Elasticity features depend on the specific housing market but in the basic mental model housing supply can contract in the medium term when demand contracts and vice versa.
Demand is also elastic at least in the sense that people get bigger houses / move on to their own earlier / get roommates depending on the situation.
And geographically people spread out further if prices get high or move in from neighbouring locales which can be seen as demand elasticity if looked at from pov of a local housing market.
Housing supply is 100% inelastic in the 6 month time frame. In the medium run it's pretty inelastic in the bay because of NIMBY backed zoning laws not allowing for densification.
BTW the price elasticity of supply equation is always discussed as how the price affects supply. Anyone know how economists think about changes in supply affecting the price, is the same equation used? Eg destruction or creation of housing units.
Demand is also elastic at least in the sense that people get bigger houses / move on to their own earlier / get roommates depending on the situation.
And geographically people spread out further if prices get high or move in from neighbouring locales which can be seen as demand elasticity if looked at from pov of a local housing market.