HOUSING DEMAND AND HOUSING SUPPLY DURING WORLD-WAR-I AND WORLD-WAR-II

Two nearly identical descriptions of housing market chaos during World Wars I and II raise the question: What happened to supply and demand during the two war periods? The explanation is not to be found in the demographic component in housing demand. In regard to supply, the acceleration mechanism implies that a low level of building activity only results in a small dent in housing supply. In conclusion, it is in both periods the big changes in relative prices that cause war-time housing problems.