The building industry is on pace to construct the fewest new homes and apartments this year since the end of World War II.
After their crazy overbuilding, this is just what the doctor ordered.
Unfortunately, we still have a huge standing oversupply of new homes. Before the inventory of new homes can become reasonable again, new home construction will have to remain low for many months to come.
Maybe with the current credit crisis more builders will run out of money. It’s my contention the homebuilders build until they run out of money. That is the only explanation I can find for the way homebuilders continued to overbuild long after the housing market peaked.