Pandemic-Era Demand Squeezed Housing Inventories

Fresquet Kohan, Valeska; Mondragon, John; Shapiro, Adam Hale

Journal Article

Pandemic-Era Demand Squeezed Housing Inventories

Abstract: The housing market experienced historically low levels of inventory along with rapid price growth in the two years following the onset of the pandemic. Analysis of national and county-level housing data suggests this price surge was fueled by heightened demand rather than low supply. The inflow of new listings remained at pre-pandemic levels, but the outflow due to sales was unusually high, which fed into the low inventory. By mid-2022, rising mortgage rates moderated demand, allowing inventory levels to return to pre-pandemic trends.

Keywords: pandemic; covid19; housing; inventories;