The squeeze on consumers has increased the focus on the U.S. housing market as a sector of the economy sensitive to interest rates. The left hand chart shows housing starts in the U.S. and recession periods. Housing activity usually peaks ahead of a recession. This time around housing market activity has not been as elevated as in the 1980s or the prior to the global financial crisis. With no boom, it is hard to contemplate a bust. The right hand chart illustrates how unaffordable houses in the U.S. have become based on rising interest rates and higher prices.