In many parts of the country, baby boomers have advocated for exclusionary zoning that limits housing density. This leads to fewer units and higher prices. On Grand Island, however, Southpointe and Rivertown Center would be permitted under current zoning, although Rivertown developers are seeking to have the site rezoned to give them more flexibility in laying out the project.
Rising housing prices across the country have many causes, including rising land values, rising labor costs, supply chain issues that have made building materials more expensive and the other factors that triggered inflation in the United States.
Despite wages rising in the aftermath of the pandemic, a single-family home is still out of reach for millions of American workers.
Some analysts say the nationwide spike in housing costs is a bubble that could burst within the next year or two. Jenny Schuetz, a housing researcher at the Brookings Institution, disagrees.
“It’s not a bubble, it’s really a question of fundamentals”, Schuetz told the New York Times in January. “It’s really a matter of supply and demand.”
The Federal Reserve’s decision last week to raise interest rates will make it more expensive to borrow money, as banks will pass the increase on to consumers who take out mortgages.