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Economic Brief

May 28, 2020

Housing Crisis Comparison Suggests COVID-19 Could Leave Economic Scars

The Richmond Fed’s latest Economic Brief suggests that regions most affected by COVID-19 could suffer lasting scars on employment and gross domestic product.

To the extent that COVID-19 generates large, temporary reductions in demand for certain goods and services, the pandemic’s long-term economic effects may resemble those of the housing crisis of 2006–09, which scarred many regions of the United States.

The Richmond Fed’s Economic Brief series provides essays on economic issues and trends. Sign up to receive an email notification when a new essay is posted.


As part of our nation’s central bank, the Richmond Fed is one of 12 regional Reserve Banks working together with the Board of Governors to support a healthy economy and deliver on our mission to foster economic stability and strength. We connect with community and business leaders across the Fifth Federal Reserve District — including the Carolinas, District of Columbia, Maryland, Virginia, and most of West Virginia — to monitor economic conditions, address issues facing our communities, and share this information with monetary and financial policymakers. We also work with banks to ensure they are operating safely and soundly, supply financial institutions with currency that’s fit for distribution, and provide a safe and efficient way to transfer funds through our nation’s payments system.

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