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Home builders now have 102,000 completed, unsold homes sitting on their builder lots. This is the highest level since 2009
(lemmy.world)
this post was submitted on 25 Jul 2024
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Housing Bubble 2: Return of the Ugly
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Well they just keep building houses in the middle of the desert in Arizona nowhere near anything in particular hours drives from any jobs and other similar places nobody actually wants to live.
People keep confusing supply in general with supply where it is desired. Homes aren’t like gold. They don’t flow to where the people are to ease demand when a new mine is found. They are stuck where they are built. If you build a bunch of them in the desert, it does literally nothing to the demand in New York or Boston or any other city.
If anything, it actually contributes to rising costs because those workers, supplies, and capital that went to building these useless houses were not being used to build houses and condos where they are wanted or needed
Also, building a bunch of homes priced at what you thought you could potentially sell them for 2 years ago no longer pencils. The ride had to end some time, we'll see how it goes.
Builders and developers have loans due, they'll be forced to cut, and then that will force existing he prices lower. That should finally impact rental housing and apartments...but of course each group will fight it all the way and lobby for lowering interest rates to prop up current pricing.