Comments on: US Population Grows to 300 Million This Month http://www.therealestatebloggers.com/2006/10/02/us-population-grows-to-300-million-this-month/ Real Estate Blog, Mortgage, and Development News Sun, 21 Mar 2010 17:00:51 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: anon http://www.therealestatebloggers.com/2006/10/02/us-population-grows-to-300-million-this-month/comment-page-1/#comment-6992 anon Tue, 03 Oct 2006 01:52:42 +0000 http://www.therealestatebloggers.com/2006/10/02/us-population-grows-to-300-million-this-month/#comment-6992 Come on Tom. We have a record amount of inventory and you still are talking about demand? Come on Tom. We have a record amount of inventory and you still are talking about demand?

]]> By: 2¢ Worth http://www.therealestatebloggers.com/2006/10/02/us-population-grows-to-300-million-this-month/comment-page-1/#comment-6990 2¢ Worth Tue, 03 Oct 2006 01:45:01 +0000 http://www.therealestatebloggers.com/2006/10/02/us-population-grows-to-300-million-this-month/#comment-6990 I agree with you that there would be organic growth driving the need for housing. But there are two parts to it. 1) The West and South have the highest growth rates - whereas the NorthEast has minimal growth (or in some cases, decline). This would show up in differential growth expectations. 2) The choices then are between existing housing stock and new construction. Given that there's a time lag for construction, there will be some growth in value - but as it goes too high, the alternative of building new, at a much lower cost, becomes more attractive. Opportunities will always be present - however, it might not be as good in specific cases. I agree with you that there would be organic growth driving the need for housing. But there are two parts to it.

1) The West and South have the highest growth rates – whereas the NorthEast has minimal growth (or in some cases, decline). This would show up in differential growth expectations.

2) The choices then are between existing housing stock and new construction. Given that there’s a time lag for construction, there will be some growth in value – but as it goes too high, the alternative of building new, at a much lower cost, becomes more attractive.

Opportunities will always be present – however, it might not be as good in specific cases.

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