American housing market is facing a persistent shortage. Home prices have reached historic highs and affordability has declined. Normally, in response to higher prices, housing supply would increase. However, new home construction has not kept pace with population growth and household formation. Recent research has claimed that the relationship between prices and supply has become diluted over time because of regulatory barriers and political dynamics.  A recent working paper “America’s Housing Supply Problem: the Closing of the Suburban Frontier?” by economist Edward Glaser and Joseph Gyourko, took a deep dive into why the supply of new housing has shifted lower. …This research showed that the once-strong link between increasing home prices and new home constructions has weakened or even reversed in many metro areas. …The striking finding of this new analysis is that the traditional engine of home building in the South is weakening.