There’s a reason that almost nothing gets built during the slow times, and that’s because there isn’t a profit to be made. At that point, properties are literally selling for less than the cost (including a profit margin of any type) to build. Most development occurs during boom years.

There are a number of markets in the U.S. where you can (still) buy an existing home for much less than the cost to replace it. It may be trite but it’s also true: cost does not equal value.