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May 02, 2007
Really Empty Nests
Consultant Bill Conerly tips us off on his Businomics blog http://businomics.typepad.com/businomics_blog/ to the growing number of homes sitting empty.
Vacancy rates for homes have bumped around 1.5% for two decades. But in the past year the vacancy rate has jumped to nearly 3%. Conerly figures that's an extra 800,000 homes sitting empty. Couple that with the still abnormally-high number of apartment vacancies (700,000) and new housing starts (1.5 million) and he figures the country now has three million units of housing stock available, a roughly 7.5 year supply.
Investing in Real Estate
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Do you mean a 7.5 MONTH supply???
Posted by: Brandon W at May 3, 2007 08:32 AM
Wait... nevermind. I read the Businomics blog and that clarified where you're getting 7.5 years from. What you should say is: at current construction rates, we have a 7.5 year over-supply of housing to work off.
That's a lot.
I figure median home price needs to drop about 25% to get back to historical norms. More in some areas, less in others.
Posted by: Brandon W at May 3, 2007 08:40 AM
They're collectibles. Just look how many Oprah owns.
Posted by: Lord at May 3, 2007 02:55 PM