Foreign capital inflows have nudged U.S. home prices past the 60% climb seen between 2019 and 2025, according to research from the McCombs School of Business. The study, led by assistant professor Caitlin Gorback, links overseas buyers to steeper price swings in hotspots for housing.

Supply elasticity fell sharply, with builders adding only 0.26% new units for every 1% price rise nationwide. Gorback notes that the 2000‑pre‑2000 era saw higher responsiveness, while post‑2009 construction lagged, leaving demand unchecked in the rapidly growing metropolitan markets across the United States and increasing.

Across 100 major cities, elasticity varies wildly. In San Francisco, a 1% price hike barely nudges supply up 0.06%, while Baltimore achieved the highest elasticity, thanks to a mid‑2010s permitting overhaul. The contrast shows how local zoning can shape market dynamics for prospective developers and buyers.

Cities now hold the lever to curb affordability gaps. Gorback urges policymakers to revise zoning and streamline permitting, mirroring Baltimore’s success. As suburban flight reverses, municipal action will be decisive in balancing supply with the surging demand driven by foreign capital for homeowners and investors.