I'm usually trackin with you. But don't understand what you mean by lack of housing supply. The inventory levels in 70% of the states are demonstrably up 15-55% yoy. Only the north/north east states have low inventory levels. Can you clarify what you mean?
I think George is likely referring to the affordability issue and how that could be solved with buku excess supply to prove a point...Take an extreme example of too much supply (lets say we had 35 bazillion houses for sale in the states). Prices would naturally fall. Too much supply..
With inventory rising for several months, reaching 1.55 million unsold homes at the end of July 2025, or a 4.6-month supply. This does mark the highest level in five years, but it still remains below the demand for AFFORDABLE homes, and the overall supply still reflects a significant gap compared to the pre-pandemic era.
In other words, buyers and sellers are unwilling to accept the new normal. So it's a Mexican stand-off.
Either home sellers need to drop prices (why would they unless they were motivated by cost of living, or job loss?) or rates drop so dramatically that these "no longer affordable" affordable houses are within reach to the average consumer (that's not going to happen).
Either dire straights will flood motivated homeowners into the market and will have no choice but compete on price (which doesn't look good for the government) or the government will need to get creative with incentives.
I'm usually trackin with you. But don't understand what you mean by lack of housing supply. The inventory levels in 70% of the states are demonstrably up 15-55% yoy. Only the north/north east states have low inventory levels. Can you clarify what you mean?
I think George is likely referring to the affordability issue and how that could be solved with buku excess supply to prove a point...Take an extreme example of too much supply (lets say we had 35 bazillion houses for sale in the states). Prices would naturally fall. Too much supply..
With inventory rising for several months, reaching 1.55 million unsold homes at the end of July 2025, or a 4.6-month supply. This does mark the highest level in five years, but it still remains below the demand for AFFORDABLE homes, and the overall supply still reflects a significant gap compared to the pre-pandemic era.
In other words, buyers and sellers are unwilling to accept the new normal. So it's a Mexican stand-off.
Either home sellers need to drop prices (why would they unless they were motivated by cost of living, or job loss?) or rates drop so dramatically that these "no longer affordable" affordable houses are within reach to the average consumer (that's not going to happen).
Either dire straights will flood motivated homeowners into the market and will have no choice but compete on price (which doesn't look good for the government) or the government will need to get creative with incentives.
Sorry, not year over year, but over the last few years.