One of the key drivers behind recent inflation was the rapid expansion of the U.S. money supply. While it took a decade for the money supply to double from 2010 to 2020, it increased fivefold in just two years during the COVID-19 pandemic. With interest rates slashed to near zero and the Federal Reserve purchasing treasuries and mortgage-backed securities, liquidity surged across the economy. This influx led to historically low mortgage rates, a booming housing market, and an urban exodus to suburban areas. Combined with over a decade of underinvestment in residential real estate, these factors reshaped demand and prices nationwide.
