Supposedly, on a national level, builders are building 2.6 homes per new family being formed in this country
Historically (for decades) this number was 1.6
Even after the market peaked in 2005 builders continued to build at the 2.6 rate which added even more excess housing units to the already saturated market
I find it interesting that if we assume that 5000 housing units per year is a reasonable rate to build in San Diego (ie, the 1.6 new houses per new family) then the 2.6 number would only be 8125 per year – but builders were building 12,000 units per year for the last 6 years in San Diego?
The 12,000 units per year would be 3.8 new houses per new family (based on the assumption that 1.6/yr equates to 5000 houses) – 3.8 is 46% higher than the 2.6 which is already 62.5% higher than the historical standard of 1.6
Wow – when San Diego has a real estate bubble they REALLY have a real estate bubble!
