Date of Award

5-2026

Document Type

Thesis

Degree Name

Bachelor of Arts (BA)

Department

Social Sciences

First Advisor

Yu, Sherry

Area of Concentration

Economics

Abstract

This thesis explores the causes and consequences of inflation in the United States, with a particular focus on housing. It begins by examining the main drivers of housing inflation, including supply shortages, rising construction costs, low interest rates, and shifts in demand during and after the COVID-19 pandemic. These housing-specific factors are compared to broader sources of inflation such as fiscal stimulus, monetary policy, global supply chain disruptions, and geopolitical conflicts. The paper also analyzes how inflation affects households across different income groups. Because housing is a large share of total expenses, rising rents and home prices tend to place a heavier burden on lower- and middle-income households. While higher-income groups may be better positioned to absorb or even benefit from asset price increases. Beyond distributional effects, this study considers how inflation influences consumption, investment decisions, and overall economic growth. Higher inflation can reduce purchasing power and create uncertainty, which may slow long-term investment with economic stability. The effectiveness of fiscal policy responses is evaluated, particularly considering recent inflation surges linked to the pandemic, war-related energy shocks, and supply chain disruptions. Overall, this research highlights the unique role housing plays in shaping inflation and offers policy lessons aimed at improving price stability while maintaining economic growth and affordability.

Rights

The author has granted New College of Florida the nonexclusive right to archive, make accessible, and distribute for educational purposes this work in whole or in part in all forms of media, now or hereafter known. The copyright of this work remains with the author.

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