Get Ready For Another Shock to Housing Affordability

Odd Lots

Bloomberg

News, Investing, Business, News Commentary, Business News

4.4 • 1.6K Ratings

🗓️ 30 January 2025

⏱️ 40 minutes

🔗️ Recording | iTunes | RSS

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Summary

One of the primary drivers of elevated inflation — and the high cost of living in general — is the price of shelter. Whether you're buying or renting, housing is very expensive. Thankfully, over the last year, some of the increases we've seen in rent prices have slowed significantly, and we're not too far away from the pre-Covid pace. The bad news is that this might not last. A confluence of factors is coming together that may cause yet another shock to housing affordability. On this episode of the podcast, we speak with Lee Everett, the head of research and strategy at the multi-family operator Cortland. He talks about how the increase in interest rates caused new development of apartment buildings to plunge, meaning supply will be increasingly scarce again in 2026. Then add in deportations of construction labor, soaring insurance costs, plus industry consolidation, and you have the recipe for another big shock to housing affordability coming quickly down the pike.

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1:19.6	I'm Joe Wisenthall.
1:21.1	And I'm Tracy Allaway.
1:22.6	Tracy, you know, one of the big themes, obviously, in American life and the most recent election was inflation.
1:29.8	And there are a lot of things that people think of when they think of inflation.
1:33.5	Maybe they think of egg prices.
1:36.0	That's in the news these days.
1:36.9	Maybe they think of gasoline prices.
1:38.6	But a big story is like the cost of living is the cost of housing.
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