The Ohm's Law of Housing Affordability: Why the Circuit is Overloaded
The dream of owning a home, or even finding an affordable rental, drifts further away every year. For many younger generations in urban areas, that dream no longer even exists.
The housing crisis isn't a problem of supply, demand, or zoning. It's an overloaded electrical circuit.
When you study systems, you realize the economics of housing map perfectly to Ohm’s Law, a foundational concept in electricity. It's the most powerful framework for understanding why our cities keep failing to build enough affordable homes.
Ohm's Law describes how Voltage (the push) drives Current (the flow) against Resistance (the drag).
Now imagine we map that same logic onto the housing system:
Voltage (V) becomes Demand (D): the collective push of people needing and wanting homes. Population growth, income levels, lifestyle expectations, and speculative investment all feed this current of desire.
Current (I) becomes Supply (S): the flow of housing actually available: new builds, resale homes, and rental vacancies.
Resistance (R) stays Resistance: every friction point that slows or blocks supply from meeting demand.
The equation is simple: High Demand (D) + High Resistance (R) = Strained Supply (S) and Low Affordability.
When demand surges and resistance rises, the flow of housing can’t keep up. Prices spike, affordability drops, and the entire system overheats.
Where the Resistance Lives
The biggest barriers to affordability aren't in how much we want housing, but in the overwhelming Resistance that stands in the way of creating it.
The Force of Demand (D): Why Everyone Wants a Home
Need: Shelter is non-negotiable. Family formation, population growth, and the universal drive for stability keep this pressure high.
Financing: Mortgage rates, lending rules, and access to credit all determine how much “voltage” the system carries—how much purchasing power people can actually apply.
The Flow of Supply (S): Where Homes Come From
Supply sounds simple, but it’s a complex chain full of friction points.
Labour: Skilled trades, workforce size, and training capacity determine how quickly we can build.
Land: Zoning, price, and availability set the stage. If the land isn’t suitable—or is too expensive—supply stalls before it begins.
Materials: Everything from lumber prices to shipping delays adds drag to the system.
The Weight of Resistance (R): The True Affordability Challenge
Resistance is the hidden force throttling flow. It’s everywhere:
Regulatory: Zoning bylaws, approval processes, and inspection delays are essential for safety—but they can also gridlock progress.
Social: Community opposition (NIMBYism), limited municipal budgets, and worker fatigue all add subtle but powerful drag.
Financial: High land prices, developer ROI expectations, and speculation all shape how much new housing gets built—and at what price point.
The affordability crisis isn’t a single problem—it’s a circuit overloaded by resistance.
If we can see where the current gets stuck, we can design pathways that let the system flow again.
