The Housing Shortage Is Over (Sort Of)

There’s good news and bad news on the housing front: The buyers’ strike of the past three years is finally working, but the path to better affordability looks painful for many of those trying to sell a home, the construction industry and, ultimately, the US economy.

When mortgage rates surged in 2022, it became clear that there was a shortage of housing available for buyers and renters alike, and that the rise in prices and interest rates left housing less affordable than it had been in decades. The silver lining for homebuilders was the opportunity the shortage represented. Prices stayed high and they kept building, supporting employment and economic activity.