Oklahoma State Home Builders Association

An Affiliate of the National Home Builders Association

Bloomberg blog: Millennials Need a New Housing Bubble

 
Posted on July 18, 2016 by By Carol Hartzog Communications

Eye on Housing

 

By Conor Sen
Copyright © 2016 Bloomberg L.P. All Rights Reserved

To understand the slow-motion trends in single-family housing, start by looking at the oil market: It took years of oil priced around $100 a barrel to spur the investments that drove higher production, leading to the current supply-driven glut and prices closer to $50 a barrel. The levers of supply and demand worked, but they worked slowly -- as is happening in the housing market.

Every year since 2009 we've been running a housing deficit: More housing for sale has been absorbed than built. With a glut of housing left over from the housing bubble and the great recession, it's logical that construction of new supply was subdued for a few years. But vacant inventory for sale normalized in 2012, and currently stands at a 12-year low. So why aren't builders building more? The pace of construction remains ...Read the blog at the Boomberg site

Housing chart

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