Sky High Supply: 1 New House For Every 1.5 New Persons
http://suddendebt.blogspot.com/2007/09/houses-as-places-to-live-in.html
Lately I've been hearing more and more about how this housing boom hasn't just been for the last 3 or 4 years, but for the last 14 years or so. The first chart in the link is the most damning evidence I have seen yet.
You know those grizzled, veteran RE agents and mortgage brokers that always say, yeah the industry is always in flux, we've been through through downturns before and this is no different? Well, here is why they're wrong. A 14 year bubble popping has got to be a first for any active broker or agent out there.
For the 14 year period, there were a total 23.1 million housing units built, while population increased by 46.4 million people - one new housing unit built for every 2 additional people. The chart below shows the progression of this ratio during the boom phase. At the end of the bubble, there was an incredible one new house being completed for every 1.5 new persons! And remember, this was not something that happened over a short 4-year boom, but went on for a full 14 years.
Lately I've been hearing more and more about how this housing boom hasn't just been for the last 3 or 4 years, but for the last 14 years or so. The first chart in the link is the most damning evidence I have seen yet.
You know those grizzled, veteran RE agents and mortgage brokers that always say, yeah the industry is always in flux, we've been through through downturns before and this is no different? Well, here is why they're wrong. A 14 year bubble popping has got to be a first for any active broker or agent out there.
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