Economic Framework for Housing Supply

The economic framework for housing supply explains how the availability of homes responds to factors like construction costs, land prices, interest rates, and government policies. When costs are low and demand is high, more homes are built to meet the need. Conversely, if costs rise or policies restrict development, supply slows down. Land availability, regulatory environment, and economic conditions influence how much housing can be supplied. This framework helps understand the balance between housing demand and supply, affecting prices and affordability in the market.