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26 ASK THE ECONOMIST HEAR DIRECTLY FROM TODAY'S LEADING MARKET EXPERTS. Skylar Olsen is the Director of Economic Research and Outreach at Zillow. She investigates housing markets all across the country and the importance of place in economic outcomes. Olsen is also dedicated to sharing housing data with policymakers as well as academic and nonprofit researchers to further understanding on a whole host of issues. She holds a Ph.D. in economics from the University of Washington, specializing in econometrics and environmental economics and was honored for teaching excellence by the University of Washington. Olsen spoke to DS News about the trends in the housing markets, the homelessness crisis, and what she loves most about being an economist. What does your day-to-day role look like as Director of Economic Research and Outreach? As a housing economist at Zillow, I and my team have access to the richest housing and consumer dataset in the world. With that dataset at our fingertips, we keep an eye on economic and policy developments in the news, and through the grapevine, and perform analy- ses to comment on those rising issues. But we also are constantly brainstorming deeper and more complicated questions we can explore, such as, how do rising rents impact homeless- ness or what impact do land use regulations have on home prices and our ability to build. We have a sense of humor too though look- ing at the best places to move for love or hot markets for dogs. Personally, I spend some of my time play- ing in the data, some of it managing and guid- ing others, a small chunk of it vision setting, and a fair share simply talking about all the insights we've explored, whether on a stage or on the phone with a reporter. What are some of the markets poised for homeownership growth this year? I expect to see homeownership rates rise in places where housing is still affordable, but have good job prospects. Southern markets like Dallas and Atlanta still have fairly affordable homes, but really strong job markets–so people are earning enough to buy a home, and the homes themselves are within their reach. With properties getting more expensive, it's taking longer for consumers to save for a down payment. How will this trend play out for millennials who are struggling to become homeowners? Millennials are facing the one-two punch of rising housing costs and record levels of student debt. We just saw a Fed report that about 400,000 young Americans didn't buy a home because of student debt. e homeownership rate for young people, despite a recent turn- around, is far from reaching the level it was at in the early 2000s, before the housing bubble. Home values are still growing faster than incomes, and our research shows that the median household income often isn't enough to break into the housing market. So, already you need to be at a higher income bracket than the average household. Another challenge is that lower-priced inventory is in higher demand, so while the more expensive price range is less competitive, there's still plenty of competition for affordable homes. is could mean multiple bids, escalation clauses, and a lot of stress for first-time buy- ers, though with the market cooling down this means buyers should be able to make a calmer more considered decision. e best thing first-time buyers can do is to be super educated about the market and their own finances and work with great profes- sionals who can help guide them through the process. "Millennials are facing the one- two punch of rising housing costs and record levels of student debt." Skylar Olsen Director of Economic Research and Outreach, Zillow

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