A dominant feature of the housing market resurgence has been an increase in investor activity (Figure 3.3). In recent months, investors have accounted for around 43 percent of sales in Auckland and 38 percent in other regions. Investor borrowing has maintained much of its momentum even though it is taking place at somewhat lower average LVRs.
Structural shifts in the US economy towards services have gradually reduced the value added of manufacturing relative to GDP, with implications for areas with a high concentration of companies in manufacturing industries other than information and communications technology. The sharp fall in house prices in Florida and the south-western US states turned boom into bust.