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While there has been a huge increase in the cost of housing in parts of the country, other sectors of the marketplace have been either enveloped or ignored. While many are concerned about the huge hit the economy will take as the bubble bursts, I think it represents a huge opportunity for another sector of the marketplace.

Presently, there is a shortage of building materials and labor as the hot housing market hired everyone who ever called themselves a builder. As new construction cools off, we will see a reduction in cost of labor and cost of materials.

At the same time, the increased housing costs have created a backlash from the social service and government advocates. Terms such as affordable housing and attainable housing are heard more often. The people who are throwing around these terms are the ones who typically scream when developers try to get zoning variances to get more condensed housing.

So here is the modest proposal for some of the more astute builders. Revamp their businesses to develop high density low cost housing, predicated upon lower labor costs and lower building materials as the bubble implodes and costs go down.  Then lobby the governmental and socially conscious to get behind the efforts of low cost housing.

The smart builder could provide a positive public relations effort, maintain their production in a slow down, and develop a new market. When the costs of development start to rise, they can reallocate their resources to more profitable building, after providing a solid infrastructure of attainable housing for the community.

Related posts:

1. No Bust, Just Fizz as Housing Bubble Fades
2. Now This is a Housing Bubble - Shanghai China
3. Chicken Little Economist Panic Over Housing Slowdown Potential
4. Housing Bubble Burst Blows Away 1 Million Jobs?
5. So What Defines a Housing Bubble? I Think I Found an Answer