Home prices did amazingly well during the Great Depression.  According to Schiller’s index, it looks likes inflation-adjusted prices fell from about 74 to 69 between 1929 and 1933 – about a 7% decline.  By 1940, they were up to about 82.  The double-dip recession of 1937-8 shows up as a small downward blip in the housing market, nothing more.

What gives?  I realize that nominal housing prices must have declined massively during the rapid 1929-33 deflation.  But the resilience of the housing market in the depths of the Depression is still most puzzling.

P.S. I’m supposed to be on Fox and Friends this morning at 7:50 talking about my new book.

Update: Here’s my interview with Gretchen Carlson.