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
In a nutshell, it actually is supply and demand. Population continues to rise, more people are living on their own vs with partner or family.
The nuance in 2024, is that there ARE plenty of homes available, but there aren’t enough homes that aren’t owned by landlords for rent. Rent is so high because property values and interest rates are high right now.
We saw the price of homes take a massive leap in 2019-2021, when interest rates were at record lows, real estate investors took full advantage and bought as much property as possible for rental purposes. Which took many homes off the market and increased the cost of the remaining supply.
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