Sunday, May 16, 2010

Keep Building

Oddly, it probably makes economic sense given the incentives. People are willing to pay a premium for new, land prices have fallen, there are significant negative externalities in neighborhoods with significant foreclosures/empty homes, and there are additional difficulties in trying to purchase homes in foreclosure or short sales. So, the builders keep building.

That doesn't mean that it's a good idea from the perspective of the municipality, but that's a different issue...