Winter 2009-2010, Vol. 34, No. 3
Abstract: The U.S. housing market began its precipitous decline in 2006–2007. As late as the winter of 2009, the outlook for any new near-term construction was bleak, to say the least. However, beginning in the late spring of 2009, public homebuilders began buying residential lots in certain markets intending to build and sell new homes. Despite conflicting metrics in housing supply and demand criteria, public homebuilders are indeed buying lots and building homes in targeted submarkets. This article summarizes the basic elements of housing supply and demand and the perception on part of the builders actively pursuing lots to increase new for-sale housing inventories.