Housing Costs a Matter of Supply and Demand
Politicians across the political spectrum agree that America has a housing crisis. Home prices and rents have surged beyond what many households can reasonably afford.
While business journalists and housing experts tend to focus on supply, the demand side of the equation is equally important in determining housing prices. When the number of families grows faster than the number of housing units, competition for existing housing increases and prices rise. This has happened in many parts of the country over the past four years, due to immigration-driven population growth.