The Problems with Supply and Demand in the Housing Market

Cities After...

"Housing is a basic human need and the market tends to ignore social needs, as it prioritizes individual profit.” - Prof. Robles-Durán

There is a widespread belief that the central culprit of the housing crisis in most metropolitan regions around the world today is the lack of supply. This notion has been well spread by mainstream media outlets and urban professionals, such as urban planners, architects, housing developers, and real-estate agencies. For those disseminating this idea, ending the housing crisis is straightforward: more and more housing needs to be built. In this episode of Cities After…, Prof. Robles-Durán contests this belief, explaining that this solution is built on the false notion of a stable market free of externalities and inherent contradictions. Addressing the housing crisis solely through supply and demand dogmas makes little sense in the era of real-estate financialization and mega-landlords. There is a much deeper systemic issue brewing than simply an unequal relationship between supply and demand.

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