Low interest rates, as well as record-high inflation, have been contributing factors to this rapid home appreciation, but the core of the issue is the national housing shortage. It seems only a few select markets have a medium-to-high housing shortage, that include major metro areas like New York City; southern California; Seattle; Portland, Oregon; Detroit; and Chicago. The company doubled down on its theory for a slowing housing market by pulling out of its iBuying business after reporting an expected $500 million loss from the inability to sell its current inventory at higher prices in 2022.