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What is holding back housing?

Author

Listed:
  • Laurie S. Goodman

    (Urban Institute)

Abstract

There are two major factors constraining the homeownership rate today: limited supply relative to net household formation and restricted credit availability. In this paper, we carefully document each of these factors, arguing that is is very difficult to fix the supply issues, as so much of the problem is local zoning laws, while steps can be taken to fix the credit availability issues. The supply/demand imbalance is currently the more significant of the two problems, as it places upward pressure on both home prices and rents.

Suggested Citation

  • Laurie S. Goodman, 2018. "What is holding back housing?," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 53(2), pages 79-85, April.
    • Handle: RePEc:pal:buseco:v:53:y:2018:i:2:d:10.1057_s11369-018-0075-3
    DOI: 10.1057/s11369-018-0075-3
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    References listed on IDEAS

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    1. Jesse Bricker & Lisa J. Dettling & Alice Henriques Volz & Joanne W. Hsu & Lindsay Jacobs & Kevin B. Moore & Sarah Pack & John Edward Sabelhaus & Jeffrey P. Thompson & Richard Windle, 2017. "Changes in U.S. Family Finances from 2013 to 2016: Evidence from the Survey of Consumer Finances," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), vol. 103(3), September.
    2. Davis, Morris A. & Heathcote, Jonathan, 2007. "The price and quantity of residential land in the United States," Journal of Monetary Economics, Elsevier, vol. 54(8), pages 2595-2620, November.
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