Source: Foundation for Economic Education
by Keli‘i Akina
“A new report from economists at the University of Hawai‘i makes a point that many of us have known all along: If we want to end the housing crisis, we need to build more homes. That’s because each new unit creates a chain of housing openings. A family that moves into a new house leaves behind an older one that is slightly less expensive, which another family moves into, freeing up another home at a lower price point, and so on. This is often referred to as a ‘filtering effect,’ and it’s not just an optimistic theory—research has revealed it to be true.” (05/11/26)