Yun says housing starts remain key to bringing home price appreciation in line with household income growth. He anticipates new-home construction to hit 1.3 million units for 2016, up from 1.1 million in 2015. The gains will be welcome news but won’t be enough to bring down prices in any significant way, Yun says.
For the 10-year period preceding the start of the recession, annual housing starts averaged 1.72 million. there truly is a shortage. Or is it in theory only? It’s not an easy question to answer..
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