I feel like there's some relevant factors not really mentioned in the article, and each of these could have consequences. Unlike in 2008 there is now a limit t

I feel like there's some relevant factors not really mentioned in the article, and each of these could have consequences. Unlike in 2008 there is now a limit to how much interest you can write off on your loan. That limit is $750K. Anything you mortgage above that you can no longer deduct from your taxes. Housing has appreciated in some markets up to 11% in the past year. This in no way seems sustainable. As a new home purchaser your will not likely not see that same rate of appreciation. If you do sell your house then you likely need to buy something else. That means that you will also need to compete in that same cut throat buyers environment and you will also need pay much more in taxes on your new even more expensive house. I also think that there's many people who will need to sell first before they can buy because whatever they are going to buy also got much more expensive and so would not be able to get a loan without first selling. Some of the shortage is also likely due to Boomers who in a normal year would have downsized going into their retirement who understandably did not as they would be concerned about strangers walking through their houses during a pandemic. Once the pandemic subsides there will likely be a boost in supply as these folks resume the normal downsizing cycle. There's a lot of people who fled the cities for the "country life" because of the pandemic. And while a lot of these people will probably stay, I think there's a lot of people who will decide that "country life" was not for them and head back to the cities in kind of reverse flight when the pandemic recedes. This will likely have ripple effects in those suburban markets that experienced a hot money influx over the last year.