The hottest Supply and Demand Substack posts right now

Missing middle housing developments can be more impactful in addressing housing affordability issues than previously thought.
Simply advocating for 'build more' without considering the complexity and various factors at play may not fully address housing supply constraints.
Increasing the construction of 'missing middle' housing units significantly could play a crucial role in normalizing the American housing market and addressing housing shortages.

Cities like Los Angeles face housing supply issues due to low permit approvals compared to cities like Atlanta and Phoenix.
National housing market statistics can be misleading as there are extreme regional differences.
The myth of a credit bubble causing price bubbles is debunked, with evidence showing price spikes before rise in debt in housing markets.

Rising rents are causing rising home prices in the US housing market, with a greater than 1:1 pace.
Density of housing is crucial in impacting housing prices, especially in cities like New York City, where dense neighborhoods are affected by supply shortages and migration trends.
The impact of COVID-19 on housing trends varies across cities, with some areas experiencing temporary relief in housing costs for dense neighborhoods while other cities like New York face complexities in supply conditions.

Price gouging can benefit people in disaster areas by incentivizing consumers and sellers to act efficiently.
Price spikes during crises lead to a more rational distribution of scarce products among those in need.
Anti-price gouging laws can worsen situations by limiting supply and hindering the market's ability to respond to demand.

Bank of America analysis suggests a deficit of 4 million homes in the US due to underbuilding over the past decade.
Home prices spiked by 41% during the Covid boom with 60% attributed to the work-from-home trend.
Vacancies are a crucial part of housing supply, with a potential need for a 300% increase in supply to match demand from 2020-2022.

Get a weekly roundup of the best Substack posts, by hacker news affinity:

Price is never fixed; liquidity is essential for determining true asset value and facilitating trading.
Surge pricing is a rapid increase in price due to fluctuating supply and demand, different from traditional linear pricing models.
In the business of food delivery, balancing in-store and app orders requires strategic pricing adjustments to maximize profitability and control over the network.

Cannabis shortages are spreading in the Western states like Oregon, Nevada, and Colorado, following California's increase in prices.
Prices are rising due to low inventory after challenging market conditions that led to a decrease in cannabis production and many inefficient producers going out of business.
The interconnectedness of the cannabis market is leading to shortages in various states, impacting pricing and supply dynamics.

Lab-grown beef becoming a closer substitute for conventional beef can impact the supply of hides available for leather, affecting industries like luxury fashion.
The theory of joint production explains the interconnectedness of markets where goods share production inputs, highlighting how changes in demand for one output can affect others.
Understanding joint production in economics goes beyond standard supply and demand models, revealing complex relationships and teaching humility about the real-world supply chains.

Researchers predict that GPT-4 technology could significantly speed up tasks in the US, leading to a potential surplus of LLM services.
There could be a shortage of GPT services due to the high demand from professionals and large corporations, with supply potentially struggling to keep up.
OpenAI may restrict GPT-4 access, possibly limiting it to US-based businesses, which could give American and Chinese companies a competitive advantage in utilizing advanced LLM models.

Supply and demand can explain a lot about labor markets, even for introductory economics students.
Workers respond to higher wages predictably, wages reflect productivity, and technology affects worker productivity.
Understanding supply and demand in labor markets can help explain trends like growing returns to education and the increasing cost of education.