Financial TimesFinancial Times

The global housing market is heading for a brutal downturn

By Alan Smith and Valentina Romei

12 Nov 2022 · 9 min read

Editor's Note

We're seeing pressure on the global property market on several fronts, the Financial Times reports. The biggest drag on the market is without doubt rising borrowing costs.

At the end of 2021, things looked rosy for the global housing sector. Across the 38 countries in the OECD, house prices were growing at the fastest pace since records began 50 years earlier.

Analysis of data from Oxford Economics, a consultancy, shows a similar trend. In 41 countries, from Norway to New Zealand, house prices were rising, bolstered by record low borrowing costs and buyers with savings to spend. Arguably, there had never been a better time to own a home.

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