[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]
You’re right that building homes is just about the best economic stimulus. But there’s no reason to increase housing starts until there is a shortage of housing. There isn’t. And nationally, there won’t be for at least a couple years. There may be geographic pockets that need more houses built. San Diego certainly doesn’t appear to be one of them. Some areas won’t need more homes for close to a decade.
Encouraging building for building sake is like building bridges to nowhere.
