We have plenty of things we could call a crisis, but suggesting we have a housing supply crisis isn’t one of them. Here’s why.
First, recall that the immutable law of economics 101 is called “the law of supply AND demand.” The two work together. In periods of high demand, the law states that supply will normally respond with increases. Failure to do so will see prices rise. In periods of low demand, supply should also fall. Failure to do so will see prices fall.
Looking at supply of housing commencements on a national basis, it’s hard to see a crisis. Sure, early 2023 figures are low, but the longer-term trend should provide some comfort.