Bubble watch: Could California’s economy handle a real estate crash?

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Bubble watch: Could California’s economy handle a real estate crash?
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California had 21% of its 2021 GDP growth tied to real estate, 24th largest share among the states and below the 23% nationwide level.

April 14, 2022 at 11:15 a.m.California’s economy has modest risks of seeing its business growth chilled by serious real estate weakness compared with other states.My trusty spreadsheet analyzed state-by-state gross domestic product data for 2021 from the U.S. Bureau of Economic Analysis.

History tells us that the more any economy is dependent on real estate success, the more one should be worried about the future. And these are skittish times for the property business as financing costs are undergoing a stunning surge — interest rate hikes on par with what was seen during the infamous 1980s interest rates spikes.

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