You’ve probably heard it: “housing shortage this, housing shortage that.” But here’s the truth no one’s telling you: we’re not facing a housing shortage.
We’re facing an affordable housing shortage.
Yet, all around us, we see more luxury apartments and high-end developments sprouting like weeds.
If the real demand is for affordable housing, why are developers relentlessly churning out luxury units that most people can’t afford?
Prices keep soaring, wages aren’t keeping up, and the average family can’t find a place to live. The middle class is being squeezed out, and younger generations are locked out of homeownership entirely.
So, why do developers keep building luxury instead of affordable? Is it because luxury units bring higher returns, even if they sit empty?
In this episode, I dive into the reality of the housing crisis, what it means, and what fuelled it all.
The housing shortage is somewhere between 1.5 million units to 7 million units. -Chris Naugle
Three Things You’ll Learn In This Episode
- 3% differential
A 3% gap exists between the national vacancy rate and that of luxury properties. What factors contribute to the higher vacancy rate in luxury real estate? -
The revenge summer
After the pandemic, many people increased their savings and reduced their debt. How did the rise in savings and drop in debt influence consumer behavior after the pandemic? -
The rise of institutional landlords
How will the rise of institutional landlords impact renters and housing affordability?
