Land. Restrictive zoning has choked off supply of lots in areas with economic opportunity. Job growth and population growth far exceed new housing supply. Prope

Land. Restrictive zoning has choked off supply of lots in areas with economic opportunity. Job growth and population growth far exceed new housing supply. Property taxes and school financing really incentivizes local government to approve commercial development (taxes, no students) and slow roll residential construction (add students). Proposition 13 supercharges this dynamic. Labor. The housing boom that ended in 2007 was an unsustainable bubble. The crash forced many workers to permanently leave the residential construction industry. Stricter immigration enforcement and Baby Boomer retirements decreases labor supply. Capital. Zero interest rate policy meant the same monthly mortgage payment could be a bid on more expensive houses. Tech workers collect a paycheck from companies that benefited from ZIRP. AirBNB allowed for arbitraging the difference between hotel zoning and residential zoning.