“Let’s Go Kill Build Something!”
Substitute “build” for “kill,” and you’ve got a pretty succinct explanation for today’s (very) robust market for new construction.
Namely, with the economy recovering (at least for many consumers) and housing inventory continuing to scrape record lows, Buyers with the means are throwing in the towel waiting for their dream home and building it instead.
The only downside: so many other people are doing the same that competition for lots and tear-downs — at least close to the City Lakes — is driving prices much higher.
P.S.: None of which is to compare prospective home Buyers to vultures (with the exception of a couple foreclosure operators I’ve run into).
See also: “If Your Parents Don’t Have Kids . . . You Won’t Either“; “The Mystery of the Missing Housing Inventory“; “Real vs. Nominal Numbers ” Housing Market Edition”: and “Twin Cities Housing Market (Early) 2014: Buyers Outnumber Sellers 3:2.“
