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Why is the supply of housing often not able to keep up with the increase in demand?
Wiki User
∙ 12y ago
That depends on the location. There can be a number of reasons, and for most locations, there are several interrelated factors.
1. Cost. Building costs have been increasing.
2. Climate. More people will move to a nice climate, using up the newly-built housing.
3. Topography. In some places (Honolulu or San Francisco) there isn't any more room to build houses.
4. Governmental restrictions. In many locations, governments restrict the construction of housing, or place "affordable housing" requirements on new developments. This ties into #1, especially where building codes are becoming much more restrictive.
5. The economy. People won't buy houses that aren't either great places to retire or convenient to jobs.
Wiki User
∙ 9y ago
Wiki User
∙ 8y agoThe supply of housing can't change very quickly because building houses is expensive and takes a lot of time
Wiki User
∙ 12y agoHousing is expensive and time consuming to build.
Wiki User
∙ 10y agoHousimg is expensive and time consuming to build - apex c:
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Only when economic equilibrium is reached. The supply is often not the same as the demand.
Which of the following best explains why the supply of housing often cannot keep up with increases in demand?
Housing is expensive and time comsuming to buildHousing is expensive and time-consuming to build.Zoning laws prevent..... :) APex Housing is expensive and time-consuming to build. Correct
What are high prices often caused by?
low supply high demand.
Is this a change in supply or demand of oranges is it an increase or decrease what will happen to the price of oranges why is this a rip off?
There is often a change in supply and demand of oranges.
Is this a change in the supply or demand of swimsuits why is it an increase or decrease what will happen to the price of swimsuit why is this a rip off?
A change in the supply and demand of swimsuits often occurs.
Is the supply of a commodity is same as demand of that commodity?
Only when economic equilibrium is reached. The supply is often not the same as the demand.
Which of the following best explains why the supply of housing often cannot keep up with increases in demand?
Housing is expensive and time comsuming to buildHousing is expensive and time-consuming to build.Zoning laws prevent..... :) APex Housing is expensive and time-consuming to build. Correct
What are high prices often caused by?
low supply high demand.
What are The two words economists use most often are?
supply and demand
What are the two words most often used by economists are?
supply and demand
The two words most often used by economists are?
Supply and demand.
Why do fads often lead to shortages?
Due to the sudden increase in demand for a product, which often causes a shortage of the product to meet the demand.
When determining the cost of an item the seller will often analyze the demand as well as the supply before setting the price of the?
When determining the cost of an item, the seller will often analyze the demand as well as the supply before setting the price of the
What is the responsible for inflation according to the demand-pull theory?
According demand-pull theory, what causes inflation is a strong demand and a lower supply. By having a greater demand, people pull prices up. Economists will often say that demand-pull inflation is a result of too many dollars chasing too few goods.
When supply increases in a competitive market?
There are two ways for an increase in supply to occur (empirically); there can be a shift in the supply curve or a movement along the curve. `Ideally for businesses and consumers, a new equilibrium point is reached that allows for a good price for both parties, and no surplus or shortage. Generally, supply increases with increased demand if the good is available and not too scarce or limited. However, often logistic curves are used to predict demand thus giving businesses a "leg up"on how much of each good they should supply. John Wal of Wal-Mart is known for his money-saving techniques involving calculus and logistic curves to monitor supply and demand.
