One of the primary drivers of elevated inflation — and the high cost of living in general — is the price of shelter. Whether you're buying or renting, housing is very expensive. Thankfully, over the last year, some of the increases we've seen in rent prices have slowed significantly, and we're not too far away from the pre-Covid pace. The bad news is that this might not last. A confluence of factors is coming together that may cause yet another shock to housing affordability. On this episode of the podcast, we speak with Lee Everett, the head of research and strategy at the multi-family operator Cortland. He talks about how the increase in interest rates caused new development of apartment buildings to plunge, meaning supply will be increasingly scarce again in 2026. Then add in deportations of construction labor, soaring insurance costs, plus industry consolidation, and you have the recipe for another big shock to housing affordability coming quickly down the pike.

Read More:
LA’s Backyard-Home Boom Offers Wildfire-Hit Residents New Option
US Housing Starts Top All Forecasts on Multifamily Construction

Only Bloomberg - Business News, Stock Markets, Finance, Breaking & World News subscribers can get the Odd Lots newsletter in their inbox each week, plus unlimited access to the site and app. Subscribe at  bloomberg.com/subscriptions/oddlots

One of the primary drivers of elevated inflation &mdash; and the high cost of living in general &mdash; is the price of shelter. Whether you're buying or renting, housing is very expensive. Thankfully, over the last year, some of the increases we've seen in rent prices have slowed significantly, and we're not too far away from the pre-Covid pace. The bad news is that this might not last. A confluence of factors is coming together that may cause yet another shock to housing affordability. On this episode of the podcast, we speak with Lee Everett, the head of research and strategy at the multi-family operator Cortland. He talks about how the increase in interest rates caused new development of apartment buildings to plunge, meaning supply will be increasingly scarce again in 2026. Then add in deportations of construction labor, soaring insurance costs, plus industry consolidation, and you have the recipe for another big shock to housing affordability coming quickly down the pike.
Read More: <a href="https://www.bloomberg.com/news/features/2025-01-28/la-s-backyard-home-boom-offers-wildfire-hit-residents-new-option?utm_medium=referral&amp;utm_source=podcast&amp;utm_campaign=odd_lots&amp;utm_content=article">LA&rsquo;s Backyard-Home Boom Offers Wildfire-Hit Residents New Option</a> <a href="https://www.bloomberg.com/news/articles/2025-01-17/us-housing-starts-top-all-forecasts-on-multifamily-construction?utm_medium=referral&amp;utm_source=podcast&amp;utm_campaign=odd_lots&amp;utm_content=article">US Housing Starts Top All Forecasts on Multifamily Construction</a>
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Bloomberg's Joe Weisenthal and Tracy Alloway explore the most interesting topics in finance, markets and economics. Join the conversation every Monday and Thursday.

Bloomberg's Joe Weisenthal and Tracy Alloway explore the most interesting topics in finance, markets and economics. Join the conversation every Monday and Thursday.

Bloomberg's Joe Weisenthal and Tracy Alloway analyze the weird patterns, the complex issues and the newest market crazes. Join the conversation every Tuesday and Thursday for interviews with the most interesting minds in finance, economics and markets.

Odd Lots

On Bloomberg’s Odd Lots podcast Joe Weisenthal and Tracy Alloway explore the most interesting topics in finance, markets, and economics. Join the conversation every Monday and Thursday. 

On Bloomberg’s Odd Lots podcast Joe Weisenthal and Tracy Alloway explore the most interesting topics in finance, markets, and economics. Join the conversation every Monday and Thursday.

Get Ready For Another Shock to Housing Affordability

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/cbfd11bf-4e93-47e6-8978-b27401453661/transcript

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