In the News: Andy Babula on the Low Supply and High Demand for Housing

Andy Babula, finance professor and director of the real estate program at the University of St. Thomas Opus College of Business, recently spoke with WCCO about the struggle for many Americans to find a place to live.

From the story:

More Americans than ever are struggling to keep a roof over their head, according to a new Harvard University study looking at the rental market in America.

When it comes to renting in America, the demand is high but the supply of places to live isn't great.

"Despite the number of cranes that you see, when you drive around, we still haven't kept up with the amount of construction and building that is necessary," Andrew Babula, with the University of St. Thomas Shenehon Center for Real Estate, said.

The Harvard study also found that more than 22 million Americans spend at least 30% of their income on rent. Half of those people are spending more than half of what they make, and that has ripple effects on the economy.

"That affects their jobs, that affects their productivity at their jobs. It affects children when they're at school, trying to learn and get an education. So all of that has greater impacts on the economy overall. So it definitely is something that needs to needs to be fixed," Babula said.