Why do people say there aren’t enough houses when discussing house prices?

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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

24 Answers

Anonymous 0 Comments

Building homes requires a lot of time, a lot of money, and requires land. A lot of places that have housing price crisis the land is a huge percentage of that. Around me a 1/4 acre lot with a condemned uninhabitable building on it still sells for about 1 million dollars.

There are lots of cheap houses available but they are in places people aren’t interested in living

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