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

supply and demand

if there are not a lot of “good” houses in an area, but there are a lot of buyers for the area the prices will quickly rise and people get priced out.

to quote country songs……they cant make more land, so buy dirt (or something). what people want cant match with reality. there is only so much land surrounding a city; and if each home has a decent yard then there goes a good portion of the land not directly used for the homes footprint.

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