US: Despite the Housing Recession, Real Estate Developers continue to build House with sky-high pric

Despite the housing recession that the US is currently experiencing, the American real estate developers continue to build houses with sky-high prices.

Despite the housing recession that the US is currently experiencing, the American real estate developers continue to build houses with sky-high prices. Newly built apartments in major US cities are mostly labeled "luxury" because they are new, and this is contributing to the growing issue of affordable housing in the US.

According to the analysts from Yardi Matrix, over 400,000 apartments were completed in 2022, with the number expected to increase in 2023. Many of these apartments, however, are priced out of reach for most Americans, particularly middle-income earners. The value of these new apartments is increasing sharply, with rental prices often exceeding thousands of dollars per month.

US: Despite the Housing Recession, Real Estate Developers continue to build House with sky-high prices

While these prices may be affordable for those with high incomes, it is increasingly difficult for middle-income earners to find housing that fits their budget. Housing contractors suggest that the growing cost of housing is largely due to the high amount of regulation in the sector. Many American cities are mistakenly labeled as having land shortages due to limited residential zoning, contributing to the high demand for housing and driving up prices.

To combat this issue, the government announced a housing action plan in 2022 aimed at increasing supply over the next five years. However, it may take some time for these efforts to impact prices and make a significant difference in the affordable housing crisis.

It is a paradox that despite the housing recession, the cost of housing in America continues to rise. The labeling of newly built apartments as "luxury" due to their newness is exacerbating the issue of affordable housing. If the government's housing action plan is to make a significant difference, it will require a concerted effort to decrease regulation and increase the supply of affordable housing over the long-term.