Slack and Capacity in Housing

One of my mantras at the Erdmann Housing Tracker has been that housing construction is still supply constrained. So, for instance, I don’t think high interest rates are slowing down construction.

My framework and the data I track can quantify the effects of these constraints and the scale of them in each market. Below the fold, I walk through these issues, and discuss the web of constraints that have led to the current moment.