Strong Demand, Limited Supply, and Rising Prices: The Economics of Pandemic-Era Housing

In a new report, Cleveland Fed researchers highlight key developments in the residential real estate and construction industry over the course of the pandemic, including recent indications that price growth will slow.

The District Data Brief, “Strong Demand, Limited Supply, and Rising Prices: The Economics of Pandemic-Era Housing,” tracks real-estate activity from the eyes of homebuilders, real estate agents, and other contacts in the Fourth Federal Reserve District, which encompasses Ohio and parts of Pennsylvania, Kentucky, and West Virginia.

“When the coronavirus pandemic began, many feared the housing market would collapse again as it did in the mid-2000s. Instead, the industry has struggled to keep up with an influx of demand for homes,” say Cleveland Fed researchers Julianne Dunn and Isabel Brizuela. “In recent conversations, realtors report that they expect activity to remain steady during the next 12 months, but they expect price growth to normalize.”

Read the District Data Brief: Strong Demand, Limited Supply, and Rising Prices: The Economics of Pandemic-Era Housing

Federal Reserve Bank of Cleveland

The Federal Reserve Bank of Cleveland is one of 12 regional Reserve Banks that along with the Board of Governors in Washington DC comprise the Federal Reserve System. Part of the US central bank, the Cleveland Fed participates in the formulation of our nation’s monetary policy, supervises banking organizations, provides payment and other services to financial institutions and to the US Treasury, and performs many activities that support Federal Reserve operations System-wide. In addition, the Bank supports the well-being of communities across the Fourth Federal Reserve District through a wide array of research, outreach, and educational activities.

The Cleveland Fed, with branches in Cincinnati and Pittsburgh, serves an area that comprises Ohio, western Pennsylvania, eastern Kentucky, and the northern panhandle of West Virginia.

Media contact

Doug Campbell, doug.campbell@clev.frb.org, 513.455.4479