[quote=DWCAP]population growth also only helps spur housing demand if density per household is holding or falling. If density is increasing, then it doesnt necessarly have to lead to more demand.

I dont know if that is happening now on a macro level or not, but one of the most often cited reasons for the falling rents we are seeing now is that people are grouping up to save. Kids move in with mom and dad, get a roommate, move into minidorm style living, people let out rooms, convert the garage etc. etc. hell people arent even getting divorced like they use to, all leading to atleast a temporary reduction in housing demand that I see no reason couldnt last for 1-2 years at a minimum. (rent contracts are for a year…)

Cutting your housing expenses by 20%+ can really make a difference in the monthly budget, alot more than not buying coffee at starbucks (unless you are some kinda junky:) ) so it just kinda makes sense. [/quote]

While I can see a temporary reduction in housing demand, It is not something that will last over the longer term, (heck I think in 2007 it was that we had the largest baby boom ever in the U.S. even larger than any that created the boomer generation).

So at current housing production there will start to be a rather large demand build up in 5-10 years unless the builders start building again, but that would require a profit to be made. Maybe not so much an issue in most of SD, but in T.V. and surrounds I think that would require a good size spike from current levels.