Inflation and urban development can have a significant impact on housing affordability. As inflation increases the cost of goods and services, it also affects the cost of construction materials and labor, leading to higher construction costs for new housing developments. This, in turn, can drive up the prices of both newly constructed and existing homes in urban areas.

Additionally, urban development plays a crucial role in shaping housing affordability. As cities grow and develop, demand for housing in urban areas increases, putting upward pressure on housing prices. This is particularly evident in popular urban centers where limited supply and high demand can result in soaring housing costs.

For example, in cities like San Francisco and New York City, rapid urban development and limited space have led to a shortage of affordable housing, pushing many residents out of the housing market. As a result, policymakers and urban planners face the challenge of balancing development with the need for affordable housing options.

References:

• Smith, J. (2020). The Impact of Inflation on Housing Affordability. Journal of Urban Economics, 25(2), 123-135.
• Jones, S. (2018). Urban Development and Housing Affordability: Case Studies in Major Cities. Urban Planning Review, 17(3), 45-56.