Saying cities are running out of housing is really just saying that jobs in cities still look attractive at current housing prices. Double current prices and suddenly most of those jobs wouldn’t look attractive which instantly reduces demand for housing until you’re back to current prices.
Interest rates do little to discourage home construction, the limitations are from transportation and zoning issues. Ie: The worse the transportation system the fewer areas are viable to build housing, and the more important existing housing and zoning restrictions in those areas are.
Interest rates do little to discourage home construction, the limitations are from transportation and zoning issues. Ie: The worse the transportation system the fewer areas are viable to build housing, and the more important existing housing and zoning restrictions in those areas are.