Housing inventory

The North Dakota governor's real estate background and affordable housing policies fit with the president-elect's plan to open up federal lands for new home construction.

The state lost almost 48,000 people by mid-2022 from two years before, according to Census Bureau estimates, spurring concern about outmigration that will curb long-term economic growth.

The end of the refinancing boom and impending rise in rates are not the only challenges lenders face. As one observer put it, they "can't make loans on homes that don't exist."

Default risks soar in minority neighborhoods during challenging economic times because, data shows, homes there are overpriced relative to incomes. Zoning and other changes could make loans more affordable by boosting housing stock and driving down prices.

One could change how commercial property is taxed, the other could change rent control policies. Both might affect financing.

One segment of the market, at least, has proved more resilient than many feared early on in the crisis.

The industry has taken some steps to lower barriers to affordable housing, but some observers say that more can be done.

A handful of institutions in the last year have rolled out loan programs targeting members of the military and first responders, but there could be risks associated with these mortgages if the economy takes a nosedive.

Popular TV shows about house fixers and flippers have sparked consumer interest in remodeling, creating an opportunity for lenders to build a specialty in renovation loans while traditional mortgage lending is weak.

Home prices are rising and first-time buyers now account for an increasing share of sales, factors that could lead to a surge in defaults during the next economic downturn.