Thursday, January 5, 2012
Matt Ygelsias argues that America is experiencing a serious housing shortage:
Probably the least-understood economic issue in America today is that notwithstanding high vacancy rates in some portions of the country, we're now objectively undersupplied with housing relative to the size of our population. Since pre-recession America had the biggest houses in the known universe, we're finding it perfectly possible to physically accommodate all these extra people by having twentysomethings live with their parents, siblings doubling up, etc. But what's basically happened is that joblessness, high debts, and lack of income have caused net household creation to crater even as the population keeps growing.