There is a double whammy. Typically, someone sells their home to buy a different home that is better suited for them. Right now, there is a massive disincentive tp sell (as the seller would lose their sweet low rate 30 year). This depresses supply even more. In Canada, this isn't even a big factor (we don't have 30 year fixed rates) but shelter inflation is one of the biggest elements of inflation. I am surprised this is not causing inflationary pressure in the US.