Typically, a good preacher will understand what is causing concern and angst in their community and more broadly, the world. Then she/he will connect this to faith and show how it can provide strength to overcome the difficult times. COVID, earthquakes in Haiti and forest fires in California all come to mind as examples of things causing concern. Today, I was listening to a preacher and was surprised by what he added to this list: rapidly rising home and rental prices.

 

Ponder that for a moment. Home and rental prices have increased so intensely that it’s being brought up in church.

 

With this in mind, let’s take a brief look at what’s driving this concern on housing.

 

 

Here are my top 8 for what’s creating this rapid growth in housing demand.

 

 

 

 

Let’s begin with the big picture, global affordability. The United States is not the only country stimulating their economy with spending and low interest rates. The graph from the OECD highlights the surge in housing prices globally.

Wrapping this up, it’s no surprise that preachers are mentioning the rapid rise in both home prices and rents. The national congregation has every right to be concerned about whether they can afford either buying a house or renting an apartment. The eight factors driving housing demand are not going to meaningfully abate soon. 

 

For now, expect the house and rental inflation to continue…and the worries.