As I have written last March there are approximately 1.2 M new households created each year. Now 4 years after the housing market peaked in 2005 we are seeing new construction fall bellow what is needed. New housing starts are now at 0.6 M which is about 50% of household growth. Keep in mind that it takes awhile for a new start turn into a new completion. And completions still have not fallen as much as starts: the latest figures show 1 M completions. (Still less then household growth).
At this rate it will still take several years to work of the inventory of homes that were built in access of demand but the tide has turned.
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