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Data from the St Louis Fed clearly shows that the issue is under-building since the mid-1980's: https://fred.stlouisfed.org/series/COMPUTSA https://fred.stlouis
by HarryHirsch 3y ago
Data from the St Louis Fed clearly shows that the issue is under-building since the mid-1980's: https://fred.stlouisfed.org/series/COMPUTSA https://fred.stlouisfed.org/series/COMPUTSA
The problem is compounded by the fact that new entry-level housing isn't built and that the old stock is deterioriating. Please, no fairytales about hand-me-downs here, you cannot subdivide an exurban 3600 sqft cardboard palace into 3 1200 sqft condominia. Zoning regulations are against it, and the infrastructure (water, electric, roads, schools) would require a massive upgrade.
- gre 3y agoHow do you read that graph? I see the dip around 2010, but what about that graph implies under-building? (genuine question, it's not obvious to me)
- HarryHirsch 3y agoUp until the mid-1980's average new construction was 1.8 million units/year, afterwards it dropped off, while the population grew from 240 millions in 1985 to 330 millions today. The fact that household sizes have shrunk, and the rural depopulation only exacerbate the problem. There is a grave supply problem.
- WarOnPrivacy 3y ago> The fact that household sizes have shrunk This will see some natural reversion as families become forced together. That's going to be especially rough ride after 80 years of erasing the housing that could accommodate those families.