By Robert S Weinroth
One of the few things I remember from my college economics classes, over 40 years ago, is the law of supply and demand, considered one of the fundamental principles governing an economy. It is described as the state where as supply increases the price will tend to drop or vice versa, and as demand increases the price will tend to increase or vice versa.
During the real estate “meltdown,” less than a decade in our past, we experienced the result of a precipitous drop in demand. As homeowners found themselves “underwater,” seeking a willing buyer to purchase their residences became a near impossibility. Prices fell as there were no buyers, no ability to finance and where there were buyers, they were looking to grab assets at bargain basement prices.
Today, with the opposite dynamic in play, there is a dearth of affordable (workforce) housing. The Urban Land Institute defines workforce housing as being priced to serve households making between 60 and 120 percent of area median income.