How Will War in Ukraine Affect the US Housing Market
Russia has invaded Ukraine and there could be some affect in the US Housing Market.
Russia invaded Ukraine today and this could potentially affect the US housing market. There are many reasons Russia’s foray into Ukraine could spell problems for US housing.
One is that existing supply chains are already strained and this will further impact supply chains from Eastern Europe. Many manufacturers rely on supplies and raw materials from Russia and Ukraine and without these materials it could affect everything from aviation to home building.
Additionally energy costs could soar as supplies of oil and natural gas are not being bought from Ukraine or Russia because of wartime sanctions.
Refugee crisis in Ukraine
Housing could be affect in Eastern Europe as well as the US housing market since there will be a number of refugees and people leaving Ukraine and not returning post-war. Most of Europe as well as the US already suffers from a strained housing market as well as low inventory. These refugees will need a place to live and although they won’t be buying homes in the US, they aren’t likely to return to Ukraine any time soon.
There will most likely be no short-term affect on the US housing market because of the invasion of Ukraine by Russia, but there could be long-term affects, especially in Eastern European countries like Poland and Romania.