WHY IS HOUSING so costly? Explanations have tended to fall into two camps. One emphasises a gummed-up provide facet: a variety of restrictions on land use and NIMBY campaigners have stymied housebuilding throughout the wealthy world. The opposite camp focuses on demand: a long-term fall in actual rates of interest has bid up the costs of all belongings. Cheaper credit score means costlier housing. But whilst rates of interest rose throughout the wealthy world within the early 2020s, costs barely budged. Why? A spread of current papers means that the interplay between fastened provide and modifications in demand explains the puzzle.