Housing Hub
This hub serves as a reference point for understanding housing markets.
Individual articles explore home prices, inventory, construction, demographics, affordability constraints, and the economic forces shaping where — and how — people live.
Housing: A Quick Review
Housing is often discussed in headlines as a single number: prices are up, prices are down, inventory is tight, inventory is rising. In reality, housing markets are slow-moving, deeply local, and shaped by forces that unfold over years — not weeks.
Unlike financial markets, housing does not reprice instantly. Homes are illiquid assets. Supply adjusts slowly. Demand is constrained not just by price, but by credit, income, mobility, and life circumstances.
This section explains how housing markets function beneath the headlines, and why short-term narratives often miss the bigger picture.
Housing refers to the stock of residential properties and the market mechanisms that determine where people live, what homes cost, and how supply responds — slowly — to changes in demand, credit, and demographics.
What Drives Housing Supply
Housing supply is not just “how many homes exist.” It is shaped by how quickly new homes can be built, how willing existing owners are to sell, and how regulatory and financial constraints limit expansion.
Key drivers of supply include:
- New home construction and permitting
- Zoning and land-use restrictions
- Labor and material costs
- Builder financing conditions
- Homeowner mobility and turnover
- Mortgage rate lock-in effects
Because supply responds slowly, shortages — once created — can persist for years, even after demand cools.
What Drives Housing Demand
Housing demand reflects more than population growth. It is influenced by household formation, income growth, credit access, and life-stage decisions.
Major demand factors include:
- Demographics and household formation
- Employment and wage growth
- Mortgage availability and affordability
- Migration and regional job trends
- Consumer confidence and expectations
Demand can weaken without prices falling immediately, especially when supply is constrained or owners are unwilling to sell.
Home Prices and Market Cycles
Home prices do not move in straight lines. They respond to cycles of credit availability, economic growth, and supply constraints — often with long lags.
Rising prices can persist even as affordability worsens, particularly when supply is limited. Conversely, prices may stagnate or fall even when demand is present if credit tightens or the job market weakens.
Understanding housing cycles requires separating short-term sentiment from long-term structural forces.
Housing Affordability Is Structural
Affordability is not just a function of home prices. It reflects the interaction of:
- Home values
- Mortgage rates
- Household incomes
- Property taxes and insurance
- Local cost of living
In many markets, affordability challenges are structural, driven by years of underbuilding, zoning constraints, and income growth that has failed to keep pace with housing costs.
This section focuses on why affordability problems exist — not just how they feel.
The Human Side of Housing
Housing decisions are deeply personal. People do not move, buy, or sell based solely on market signals. Family needs, job stability, schools, health, and emotional security all matter.
Two households facing the same housing market may make entirely different decisions — and both can be rational.
Understanding housing means understanding people, not just prices.
If you’re considering a purchase, refinance, or simply want to understand how current mortgage conditions apply to your situation, you can schedule a one-on-one conversation with me.
There’s no obligation — just a clear, practical discussion focused on your goals and constraints.
Nick Cunningham