It's purely a survival decision from the banks. Enough single-family housing was built during the bubble to safely house us all well into the next decade. Every homebuilder in the country is smart enough not to invest in adding to that overhang. The prices/sales are dropping now - what will they look like a year from now?
These articles are like those skills-shortage rationalizations for the current level of prime-age employment that ignore the fact that neither hours or wages are rising, so there clearly isn't a shortage that is having an economic impact.
Absolutely, a lot of housing was built during the bubble. At least around here, it takes the form of a bunch of McMansions way out in the 'burbs. It's housing that was designed by baby boomers for baby boomers - the demographic whose current vector points out of the mainstream housing market and into retirement communities. For young folks entering the market, many have decided there's just way too much time, money, and gasoline in between those houses and the desirable jobs. You might as well say, "Well there are plenty of houses up for grabs in Detroit." That's well and true, but also pretty much irrelevant to someone trying to make a career in the job sectors that are currently growing.
I'm sure the market will eventually sort it out; the current situation is creating plenty of opportunities to make a buck for someone smarter than the banks have proven to be. But that doesn't mean it isn't an irritating situation.
> smart enough not to invest in adding to that overhang
This is interesting... new housing and old housing affect each others' prices, but aren't quite fungible. I'm surprised some developers aren't just confidently outcompeting existing stock with better quality newer homes.
Are newer homes absorbing an equal or larger share of the vacancies than older homes?
Is there some class of home that is absorbing a disproportionate share of the vacancies?
These articles are like those skills-shortage rationalizations for the current level of prime-age employment that ignore the fact that neither hours or wages are rising, so there clearly isn't a shortage that is having an economic impact.