Chart of the Day: Housing Boom, Housing Bust

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Via Brad DeLong, this chart shows how much housing was “overbuilt” during the aughts compared to how much it’s been underbuilt since the collapse of the housing bubble. As you can see, on net, we’re now way, way underbuilt, which means we should be all set for a renaissance of housing construction. Assuming anyone still has the money to buy a house, that is.

Of course, there’s another way to look at this: why did home prices rise so furiously even though we were building lots of homes? That’s odd, no? Simple supply and demand suggests that when the supply of something goes way up, its price should go down. But it didn’t — and it’s not because the fundamental demand for housing suddenly skyrocketed. It was because Wall Street could make a lot of money from a housing bubble, so they invented the financial artistry to get one. Thanks, guys!

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily bluster—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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