Economic shifts during the development time can indeed cause a mismatch between housing supply and demand. This is because the timing of housing construction often does not align with fluctuations in the economy. For example, if there is a recession or a significant change in employment rates during the development phase, demand for housing can drop unexpectedly. Conversely, if the economy is thriving but housing projects do not keep pace, it can lead to a shortage of available homes. These shifts can occur due to a variety of factors such as changes in income levels, employment stability, or consumer confidence, all of which can influence the demand for housing even while supply is still being developed.
In contrast, immediate housing construction may help meet demand but does not inherently create or resolve mismatches. Consistent population growth generally contributes positively to housing demand, thereby not causing a mismatch. Government subsidies for building can encourage supply, yet they do not directly account for potential economic shifts that could alter demand during the construction period.