Persistent Lack of Housing Supply Drives Migration Patterns

A persistent lack of housing supply has driven migration patterns in the United States for years. Before 2008, cities like New York City and Boston faced a constant shortage of housing due to high demand, leading to a counter-cyclical migration pattern. As the economy improved, people sought more housing, but since these cities couldn't accommodate the demand, residents started to move out. Between 2000 and 2006, families migrated from these cities to places like Florida and Arizona, causing a housing bubble in those regions. Interestingly, Arizona and Nevada were building more houses for San Francisco and Los Angeles residents than the cities themselves. This migration phenomenon was not driven by excessive greed but rather by a deprivation of housing options, resembling a refugee crisis in developed countries.