Liberal Forum

Fuelman » 15 Sep 2025, 8:31 pm » wrote: ↑

15 Sep 2025, 8:31 pm

This says there is a shortage:

shortage of houses results from a long-term decline in new home construction, insufficient land availability, restrictive zoning laws, rising construction material costs, and a growing population that increases demand. Additionally, institutional investors purchasing properties, high interest rates, and policies that limit development further diminish available housing, creating a supply-and-demand imbalance.  Factors contributing to the housing shortageUnderbuilding after the 2008 recession:New home construction dropped significantly after the Great Recession, and supply has not fully recovered to meet increasing demand. Population growth:A rising population, particularly with millennials at prime home-buying age, creates greater demand for housing that outpaces the current supply. High cost of construction:Rising costs for building materials and supply chain issues, exacerbated by the pandemic, make it more expensive to build new homes. Restrictive zoning and land use policies:Local regulations, especially single-family zoning, limit where and what types of homes can be built, reducing housing supply and affordability. Institutional investors:Large investors buy housing inventory for rental or resale, removing units from the market and making them unavailable for individual buyers. High mortgage interest rates:Elevated interest rates make it harder for potential buyers to afford homes, while also causing some homeowners to delay selling their existing properties with lower-rate mortgages. Community opposition to new development:Local "Not In My Backyard" (NIMBY) attitudes often block new affordable housing developments, especially in high-opportunity areas. Barriers to building in certain areas:Some areas lack suitable land for building, have high land costs, or face other physical and economic constraints that hinder new construction.