What does it mean to be supply constrained? The simple definition means you don't have enough supply to meet demand, but that's too simplistic a definition. Supply constraints can happen for two reasons. The supply curve can shift (i.e. a decrease in supply), or the demand curve can shift (i.e. an increase in demand). The Fed's 0% interest rate, coupled with unprecedented government stimulus, lead to a huge increase in demand. So yes, technically, we are supply constrained, but we are supply constrained because of an increase in demand caused by government policy.
Just an example, as part of the CARES act, congress allocated 800 billion for PPP loans that were supposed to go towards payroll. Now the Federal Reserve finds only 25% went to employees. So that was basically an unnecessary infusion of 600 billion into the economy over a really short time window. And that money went to people who already had plenty of money. Is it a surprise why the housing stock is so low?
Just an example, as part of the CARES act, congress allocated 800 billion for PPP loans that were supposed to go towards payroll. Now the Federal Reserve finds only 25% went to employees. So that was basically an unnecessary infusion of 600 billion into the economy over a really short time window. And that money went to people who already had plenty of money. Is it a surprise why the housing stock is so low?