Has America Drowned Itself In "Luxury" Housing?

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#housingmarket #realestate #money

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So the solution to the problem of unaffordable housing seems so simple right? Just build more houses!
Well we have been…
New construction is approaching the highest rate it has been since the 2008 crash, and that's DESPITE record high construction costs that came about because of disrupted supply chains.
The problem has been… if we were building the right KIND of housing.
As costs rose and margins shrank, the only kind of property that remained profitable to build was LUXURY property… and now we have found ourselves in a strange situation… We might have too many houses.
Now I know what you’re thinking, sounds great right? Wrong!
Despite all of this new development, we are still short about 4 million homes by most estimates, and if developers can’t sell the “luxury” homes they have already built, it’s much less likely they will build the other homes we actually need.

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