Ive heard repeatedly when trying to learn about our housing situation that we don’t have enough homes. I don’t understand how that’s the case or if it’s even true. Who or what is stopping more homes from being built exactly? If the demand is so high and the supply is so low then the suppliers would obviously ramp up production, right?
In: Economics
A lot of the answers suggest that it is zoning. I would disagree with that. I build apartments and homes.
My biggest reasons that I don’t build more:
1) I can’t find enough laborers to build more
2) I can’t find open buildable land in places where people want to buy a house. In my town of 34k people, suburban area, there are literally no open lots for building.
3) I can build in a less desirable area but the profit would not justify it at current interest rates. I’m better off deploying my capital elsewhere.
4) Instead of building homes for sale, I’m building luxury apartment buildings. 100 to 200 units each development. We lease before construction is complete.
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