Supply is not keeping up with demand. It’s a problem with solutions that take time and interest rates dropping.

Everyone is holding onto their homes with low interest rates, Builders are nervous to over extend their capacity and be stuck with homes they cant sell for the profit required.

Housing starts were up 4% in July to 1.452M. Single-family starts rose 6.7% in July to 983k. Starts are up 9.5%. But it’s just not enough.

Housing Permits i.e. future supply were flat last month at 1.442M units. Down 13% from last year. The last three months have seen higher starts and permits but still not enough.

My opinion is rates have to drop to shake loose all those homes that people cant afford to sell and buy the home they want.