06/01/2026
26 in 2026’ Kuna Economic Development Info Campaign
📌Topic 11: Why is Housing So Expensive? 🏠
🏡Supply & Demand
• Housing prices depend on how many homes exist vs how many buyers there are.
• Too many buyers, too few homes = bidding wars, rising rents & higher home prices.
• More homes than buyers = less competition, lower/stable home prices.
When demand grows faster than supply, housing becomes more expensive fast.
🏡Location Matters
Homes cost more in places with:
• Good schools.
• Safe neighborhoods.
• Shops & amenities.
• Shorter commute times.
The more desirable the area, the higher the price.
🏡Interest Rates
• The lower the interest rate, the cheaper it is to borrow = increased demand & fast price growth.
• The higher the interest rate, there are fewer buyers & slower price growth.
🏡Wages vs Housing Costs
• Housing Costs = Shelter + Utilities + Upkeep + Required Fees. It’s about the full cost of living, not just the rent/mortgage payment.
• Housing is considered affordable/attainable if it costs less than 30% of your income.
Example: Monthly Income $4,000 x 30% = $1,200. If your rent is $1,800, that’s 45% of your income – that means less money for necessities, it’s harder to save & you’re under more financial stress.
🏡How can Housing Affordability/Attainability be Improved?
• Encourage development of a variety of housing types – single family homes, townhomes, duplexes, apartments – it creates options for different income levels and seasons of life.
• Increasing wages and opportunities through better jobs and skills training.
• Encourage innovative building with faster, more cost effective methods (i.e. kit homes, reusing existing structures, recycled materials, etc.)
Creating more affordable/attainable housing comes from increasing supply, reducing costs, thinking outside the box, supporting residents and planning ahead.
Do you have a question you would like answered? Email us at [email protected]!
