............................there are two main culprits. The first is the huge swath of the local building companies that could not survive the Great Recession. Since we decided several decades ago that every high school graduate needed to go to college, there was no back filling in the building trades. No local builders building equals a shortage of supply. The second is the following chart. Don't let anyone tell you differently, very low interest rates are inflationary for the single-family housing markets. Since buyers tend to pay based on their monthly payment, low interest rates enable buyers to borrow more, thus pay more, which is a great boon to sellers. Very low interest rates combined with limited supply quickly allowed the sharp increase in home values. Voila—an affordability "crisis".
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