FT News Briefing The housing supply problem
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Jun 25, 2023 Home prices are soaring in both the US and UK, driven by pandemic-related dynamics. Couples are struggling to navigate tight markets, with rising construction costs and limited inventory. Innovative solutions like home sharing and converting offices into condos are gaining traction. The impact of stubborn inflation on the UK housing market is also explored. Political dynamics leading up to elections could influence future housing policies, with parties strategizing around these pressing issues.
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Asheville Home Search
- Caitlin and Drew Friedman, locals in Asheville, NC, spent nine months searching for a starter home.
- Limited inventory and competition drove them to offer $11,500 over asking price on their successful bid.
Asheville Housing Shortage
- Asheville's housing shortage stems from a decline in new home construction since 2008 and the "interest rate lock" phenomenon.
- Homeowners hesitate to sell due to higher current mortgage rates.
Home Sharing vs. Roommates
- Home sharing, distinct from traditional roommates, involves reduced rent in exchange for chores and often features an intergenerational dynamic.
- This arrangement addresses rising rental costs and offers community integration, as seen with Bebel and Isaac.