Housing Demand and Supply Imbalance

Orange is Case Shiller Home Values Blue is Housing Starts Green is US Population Growth

There are more people, and there are less houses, this puts pressure on housing prices and causes their value to increase - more demand than supply.

Houses take time to build, and after the 2008 meltdown in housing, builders were hesitant. Housing prices are a motivator to build, and builders became unmotivated until almost 2013.

It will take many years for these housing starts to meet the supply imbalance.