– 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

I only skimmed the other answers and didnt see this: a big problem particularly in desirable zip codes is residential zoning laws.

Basically, you just can’t build multi family homes or apartments in a lot of places that they are desperately needed. This limits supply which raises home values. Good for people in that zip that already own, and a big f you to everyone else (which is why homeowners fight against zoning changes).