I read again a post on housing. (I think I read it before. I may have even posted it. the main fact is that you can argue that we are facing a housing shortage. I had though of the housing supply as excessive for a long-time due to the easy money of the early 2000’s.
But Karl Smith offers an alternative view. The boom in housing was not that much. Check out this graph:
The point is that the growth in population her growth in houses is at a rate of almost 5 people per house. If that were to continue it would imply a doubling in household size, and that seems unlikely.
Another implication is that the idea of an excess construction of homes that collapsed as the cause of great recession doesn’t hold up well. The idea that housing was hammered by tight money does hold up. Check out this previous post.