GB News host Jacob Rees-Mogg highlighted a huge similarity between the US and the UK housing crisis whilst speaking to Mitch Roschelle, expert in the US real estate industry.
US home prices are currently at an all-time high, with prices skyrocketing during the pandemic
Roschelle warned that the reason for this is because there is "more demand than supply" and explained that the situation is unlikely to improve in 2024.
He suggested that a way to fix this would be to "just let the builders build".
The US is facing a housing crisis
GBNews
The UK faces a similar challenge with many unable to afford a home due to "zones and planning laws."
Talking about the crisis Jacob Rees-Mogg said: "In the UK we have very difficult planning laws that mean houses just don't get built. I thought it was easier to build new properties in America?"
Roschelle then explained that the US is actually very similar. He said: "The reality is it's not easy. I tend to simplify the answer to your question with 3L's. Land, lumber and labor.
"Land prices have risen steadily because land that is zoned and permitted and residential home construction is very limited.
The UK faces a similar challenge
PA"Labor. The labor market in the United States has been very tight for quite a while and finding a skilled laborer to build homes is tricky."
He then concluded with: "Lumbers, the catch all for all materials that go into building a home.
"It's not just wood, it's a lot of things. And since the COVID pandemic it's been a global news story that supply chains have been disrupted.
Jacob Rees-Mogg then commented: "That is absolutely fascinating because in such a large country, you've got exactly the same problems as as we've got that's forcing prices up because of supply not meeting demand.
The former politician highlighted the similarities between the two countries
GBNews
" And you've also got mass migration as well. So you've got that extra waste of demand for housing."
The expert added: "What they're trying to do is pave the way for more supply
"So it's actually falls firmly on the hands of government, whether it be local municipal government or national government or state provincial government, to actually get out of the way and allow builders to build.
"If you just get out of the way and let them do their job, the free market will actually solve this housing problem."
