– I keep hearing the housing market in the USA had such a price surge because of demand increase and a lack of housing. Why did happen all of a sudden? There wasn’t some huge increase in people too.

Question

Secondly- What would it take for prices to change?

In: Economics

Answer 1

Digital nomads and wfh has led to more people mobilizing. So they sit on multiple properties and have vacant unused property. Look at Miami. All the condo high rises are sold out, a great portion to foreign nationals laundering money. But they remain unoccupied large parts of the year.

Now is that happening in middle America? No. But an Ohio family with a new found ability to beach in Panama City beach during summer just increased their homes owned by two. Techies moving from Airbnb to Airbnb incentivize airbnbs that aren’t 100% occupied to have unoccupied homes off the market rather than used full time. It happens even at the most miniature two weeks in a rental aspect. Owner can cover monthly rent with two weeks on Airbnb and the space is unused 40% of the year.