Home Building Over the Past Decade
Anyone who has been in the market for a new home lately has no doubt confronted one of the most basic economic laws – The Law of Supply and Demand. When a particular good (such as housing) is scarce, but in high demand, the price of that good will rise. While undersupply may not be the only factor impacting home prices, after reading this article by NAHB Chief Economist, Robert Deitz, we think the extent of this impact cannot be overstated.
This article provides an outstanding overview of home building over the past decade, highlighting the incredible deficit of new homes built compared to previous decades, despite continued population growth and new household formation.