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It's not for lack of demand for shelter (including the ability to pay). Rents are rising. It's a lack of funding for purchase. That ends up limiting new supply, which leads to rising rents, which entry level households must pay because they can't get mortgages.
But is it lack of supply or that entry-level households have too little income/too much debt?
If they have too little income, then why are they able to pay higher rents?
I don’t know. That’s my question. I’m trying to understand the mechanism by which mortgage credit is being rationed. There doesn’t seem to be a shortage of other consumer debt, but again, I don’t know
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