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1. Babies keep being born, the darn things. I wonder how that happens?
2. Housing is generally tight across the US which means there is barely enough supply to meet the increasing demand. See point number 1, above.
Lesser factors: homes demolished or deemed not suitable by virtue of condition or location based on changing consumer requirements, think of it as trapped or inaccessible supply. This reduces supply. Immigration into the US is a slight strengthening factor for demand.
Conclusion: people need places to live. When supply is short or tight, as it is, price action and transactions are brisk, as they are. The only way to alleviate this is through new home construction, which is also strong.
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