Urban Institute Update
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Urban Institute Update
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Low housing supply is largely responsible for high home prices and rents
An acute housing supply crisis is driving up home prices and rents. How do we fix it? Build more homes.
People often blame increases in home prices and rents on several factors—too much high-end construction, increases in credit availability, institutional investors, or low interest rates disproportionately helping investors, not homeowners. But the lack of housing supply is largely responsible for high home prices and rents.
A more aggressive federal housing supply policy could help combat this shortage.
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