Comments on: Housing shortage? http://www.moderndallashomebuilder.com/2011/04/13/housing-shortage/ Classic Urban Homes Fri, 20 Apr 2012 16:08:33 +0000 hourly 1 By: cuh http://www.moderndallashomebuilder.com/2011/04/13/housing-shortage/#comment-92 cuh Thu, 14 Apr 2011 01:00:10 +0000 http://www.moderndallashomebuilder.com/?p=161#comment-92 Good to hear the eternal pessimist Steve Brown has started being more reasonable! The new housing shortage is something we've mentioned at least twice before: <a href="http://www.moderndallashomebuilder.com/2009/01/12/newsflash-its-not-all-bad/" target="_blank" rel="nofollow">Newsflash - it's not all bad!</a> and <a href="http://www.moderndallashomebuilder.com/2008/12/17/housing-economics-101/" target="_blank" rel="nofollow">Housing Economics 101 </a>. It's simple math really - for several years, the high-end builders have stopped building homes. Simultaneously, new household formation continues to grow. At some point, you simply run out of new homes. Welcome to econ 101 - supply and demand. Let's just hope the builders' memories are long enough to remember what happened and don't go crazy. Thankfully I believe the banks will hold them in check this time. Good to hear the eternal pessimist Steve Brown has started being more reasonable! The new housing shortage is something we’ve mentioned at least twice before: Newsflash – it’s not all bad! and Housing Economics 101 .

It’s simple math really – for several years, the high-end builders have stopped building homes. Simultaneously, new household formation continues to grow. At some point, you simply run out of new homes. Welcome to econ 101 – supply and demand.

Let’s just hope the builders’ memories are long enough to remember what happened and don’t go crazy. Thankfully I believe the banks will hold them in check this time.

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