Housing prices rose sharply in the first two years after the pandemic began, as housing inventories reached historically low levels. According to the Economic Letter titled “Pandemic-Era Demand Squeezed Housing Inventories,” researchers found that this drop in inventory was mainly due to unusually high demand for housing rather than a reduction in supply.
A video accompanying the Economic Letter features John Mondragon, research advisor at the Federal Reserve Bank of San Francisco, who discusses changes in housing demand during and after the pandemic.
The views expressed by the authors do not necessarily represent those of the management of the Federal Reserve Bank of San Francisco or the Board of Governors of the Federal Reserve System.
John Mondragon is a research advisor, Adam Shapiro is a vice president, and Valeska Fresquet Kohan is a research associate in the Economic Research Department at the Federal Reserve Bank of San Francisco.
