Why are home prices so high?

1st Supply and demand cause the increase, especially in areas where we are seeing mass amounts of moving into an area to "escape" other areas. The rising cost of building is driving prices, which are also aggravated by inflation. The fact that there are areas, where the inventory supply is low and more buyers want to move to an area than there are homes available is the biggest factor!

Many factors including Supply & Depand and Inflation.