– 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 isn’t a shortage of homes, there is a shortage of homes where people want to live. Urbanization is real and every year more and more people move from rural areas to urban ones (and then neighboring areas urbanize as well).

In my area there is such an influx of new people that we are building apartment/condo complexes now whereas 10 years ago it would have been communities of single family homes.