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
[https://fortune.com/2024/06/26/housing-market-surplus-affordability-real-estate/](https://fortune.com/2024/06/26/housing-market-surplus-affordability-real-estate/)
There isn’t.
There is a housing surplus, just, as the article here says, not for people who can’t afford houses.
Anecdote: I just bought a house. I make a little over $75k and could only qualify for a $90-$125k mortgage. Houses in my area that aren’t dilapidated start around $300k. Ultimately I got into one at $350k but only because I was super lucky and privileged (my dad sold some land and loaned me the money). If he hadn’t then i would have needed $225k to put down.
Perspective: My Dad bought my childhood home in 1974 for $39k while making $12k a year. That’s almost 2.5 times his salary and he made almost no down payment. So, not only are houses much more expensive, but the math for mortgages has changed and lenders won’t lend you 2-3 times you yearly income anymore (it’s 90-150% MAX)
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