Oh boy, the affordable housing crisis just got worse in the United States.

The U.S. of course has been facing an affordable housing crisis for years now,

especially since the Great Recession of 2008-2009.

The number of homes available has been exceptionally low, and in recent years

the pandemicemic rising interest rates

high rates of inflation have only worsened the matter.

Estimates vary on exactly how much housing is needed right now,

but the numbers are certainly in the millions

and we don't have the housing units who supply all of these people that need homes.

There are a few reasons why there's such a shortage right now of homes and in this video we're

going to dive into the main factors driving up the cost of housing, plus some realistic solutions

that investors can use to bring more supply to the market. The first thing you need

to know is that at its core the affordable housing crisis comes down to a supply and demand imbalance.

But below the surface, there are actually many factors creating a lack of supply.

Builders have been burned before and they're hesitant to pick up the pace. They know what

potentially could happen like 2008 all over again. New construction home has come

to a screeching halt of course and it did so after the Great Recession. And then the industry never fully recovered.

They've always been real hesitant to kind of go full board

like they were in 2008 or 2007 before the crisis.

The costs of both materials and labor are also making it

expensive to build affordable housing. The National Association of Home

Builders saw a 9% decline in the rate of new homes being built as of August of 2023, citing concerns of affordability.

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