- Post 09 August 2012
- By Copy Editor
(The Daily Bell) - 40 million houses too many ... one explanation for falling prices ... America has too many big houses – 40 million, to be exact – because consumers are shifting preferences to condos, apartments and small homes, experts told the New Partners for Smart Growth Thursday, holding its 11th annual conference in San Diego through Sunday.
Relying on developers' surveys, Chris Nelson, who heads the Metropolitan Research Center at the University of Utah, said 43 percent of Americans prefer traditional big, suburban homes but the rest don't. "That means we are out of balance in terms of where the market is right now, let alone trending toward the future," he said. He estimated that this demand suggests a need for 10 million more attached homes and 30 million more small homes on 4,000-square-foot lots or less. By contrast, demand for large-lot homes is 40 million less than currently available. "Is it any wonder that suburban homes are plummeting in price, because there is far less demand of those homes than in the past," he said. – UT San Diego
Dominant Social Theme: Another day, another market failure.
Free-Market Analysis: This article originally appeared in early February but is still being picked up around the web – and it certainly provides us with a shocking observation. ... continues...