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
You need to also consider what kind of housing is being built.
In cities there’s been more of a push to build higher density condos. To maximize profits of these buildings, they cram as many units as possible into a building.
The consequence of this is that you end up with units of 300 sqft and sometimes less.
Most people looking for housing these days are millennials who are moving out of the apartment/condo living and into larger homes where they can settle down and start families.
Since there’s a lack of this type of housing for people, prices go up.
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