– 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

Working from home is probably another factor. I’m in Australia but I understand the US is similar – around here there has been a seismic physical shift in where office workers work, with effect on both employers and employees. Until recently, office workers worked in the offices supplied by their employer, and their homes did not need a home office.

Post-Covid, many companies have been caught out with far more office space than they need because – especially if they are hot-desking – their employees’ place of work has shifted from the company office to home. Correspondingly, office workers now want an additional space or spaces at home, to serve as the home office.

This adds even more pressure to the residential housing market.