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
The cliche in real estate is that the three most important factors are location, location, location. Home buyers are often looking for that sweet spot in location that gives them proximity to work, schools, community, etc. When a location ‘fills’ competition for any openings increases, and there’s nowhere to put extra houses in the location. They don’t care if they can get 10 acres and a mansion 100 miles away from their preferred location at half the price. Small towns don’t attract people who want the resources that a city location brings, and creating new cities is hard.
Remote work allows some burden to shift from work location, but there will always be people who want or need to be in a city or choose a specific suburb for reasons.
Latest Answers