Higher interest rates doesn’t fix this at all. The supply shortage is in available land (with the right permission/zoning/etc) Higher rates will reduce the pro

Higher interest rates doesn’t fix this at all. The supply shortage is in available land (with the right permission/zoning/etc) Higher rates will reduce the profit the land owner can take, but they also increase the costs to the builder who has to pay the bank more to borrow to build (before repaying after selling). It doesn’t affect the affordability for the purchaser which is set as a given percentage of their monthly income.