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« Power to the People | Main | Taxing Stuff » August 27, 2003The Myth of the Housing BubbleFrom Minnesota Public Radio, via Marketplace.org: Builders broke ground on more homes in July than any time in the past 17 years. Some say that the bubble will soon burst and bring prices back to earth - not so fast, says commentator Susanne Trimbath. We have endlessly stoked demand, says Trimbath, but many buyers quickly discover demand exceeds supply because of fees and insurance that add thousands to a homebuilder’s costs. So, now, developers build houses to spec to avoid paying for it all up front. Problem is homebuilders couldn’t build homes fast enough, so they stopped selling in advance.Trimbath is senior research economist at the Milken Institute, an independent economic think tank in Santa Monica, Calif. You can listen to the commentary here. Comments
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