[quote=outtamojo][quote=Arraya][quote=outtamojo]” Lack of building and less than trend household formation are bullish for prices in the far out future.[/quote]
This is making a huge assumption that we will be going back to historic economic growth patterns when all evidence points the contrary and in fact is probably impossible.[/quote]
In a nutshell, your assumptions are just as huge as mine and require just as much faith.[/quote]
I’m confused by what you’re saying. How can lower household formation increase demand? I think you’re right on the household formation, at least for the next 10 years. There is certainly conflicting data, but I suspect household formation will be almost flat for as much as the next 20 years as boomers downsize and die. If we already have an over supply of housing, then demand will not rise. Neither will prices. Possibly unaffected by other economic growth.
