Seven Costanza said:
One of the fundamental long-term issues is the shortage of homes. We have basically lost a decade of new home construction, something that seems nearly impossible to catch up to.
The chart is for new homes completed.
Seven Costanza said:
One of the fundamental long-term issues is the shortage of homes. We have basically lost a decade of new home construction, something that seems nearly impossible to catch up to.
The chart is for new homes completed.
From 2007-2017 I was in homebuilding supply. Coming out of the crash, this chart was my lifeblood.
Did you know: it takes 1.5 million units of housing built annually just to make demand equilibrium. Tear downs, urban sprawl, immigration, education growth, age growth, wealth creation, printed money all factor into an equilibrium of 1.5 million units needing to be built annually.
So you nailed it with your question. How do we catch up to demand with that lost decade from 2010-2020? The answer is with supply. That's the only answer. It's why I answered on page 1 that the only areas who will experience a real estate correction are politically blue areas where people will flee.
In Texas, you won't have price corrections. You may have price stagnation, but when rates return to historical lows in 2023-2024, say hello to California housing prices and a metric shlt ton of Multifamily construction.