– 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

There was a supply chain problem, that started with lumber imports from Canada. This drove up material prices, making larger homes more lucrative for builders. So, there is an adequate supply of large, expensive homes. What there is a shortage of is low cost housing.