Signs of economic strain emerge in Trump’s home base

The housing market may not cause the next recession like it did in 2008. But weakness in the construction of new homes, sales of existing homes and affordability for millennials looking to buy for the first time could contribute to a recession arriving as soon as next year or prolong any downturn. In addition to 2008, declines in the housing market were tied to recessions in 1974, 1980 and 1990-91, raising concerns that history is about to repeat.

One area where housing-market stress is obvious is the one Trump knows best: High-end apartments in Manhattan, where prices are now dropping as foreign buyers disappear and wealthy residents flee to lower-tax states.

“When you look at the New York metro area, we are moving from an extended period of stagnation to one of outright softening,” said Joseph Brusuelas, chief economist at RSM, U.S.