[quote=briansd1]We need to increase housing starts in order to stimulate economic growth. The resale of existing house does nothing for GDP.
But how to encourage building without price appreciation? Builders need access to cheaper land, building materials and contract labor.
Interesting predicament we’re in.[/quote]
BTW, in the typical real estate resale transaction there are about 30 to 40 people involved who are compensated in some way. Then the new homeowner will typically spend money on paint, flooring, appliances, furniture, landscaping and numerous other improvements. Saying the the resale of exisitng houses do nothing for GDP translates to not understanding what really occurs.
