From the US Census Bureau, annual new home sales in recent years were as follows (Excel):
2006 - 1,051,000
2007 - 776,000
2008 - 485,000
2009 - 375,000
The population of the USA is five times that of the UK, so rather surprisingly, even at the height of the boom in 2006, they were only building as many homes per capita as in the UK. Or, assuming three people per household, the US housing stock was only increasing by one per cent a year.
Heck knows what excuses the US NIMBYs use(d) to keep new construction down to such a low level. And yes, there are such people.
A grim document
14 hours ago
9 comments:
Would be good to get to the bottom of what is the real cause of the demand for homes:
1) Somewhere nice to live
2) Speculation
3) Bit of both
Evidence needed still though.
It's culture Robin. HOism is deeply ingrained in the British culture.
One of my mates has carefully saved up over £40k, he played the stock markets a little bit, but carefully and hated losing ANY money when the dips came along the way.
Now he is going to whack it all down on a deposit for a house. I pointed out to him if prices went down another 20% he would lose 80% of his equity.
His response was 'Yeah I know, but I need somewhere to live and I don't want to rent because then I'm just paying someone elses mortgage. All my mates own houses now and I want one too'.
Steven_L
Fair points but you have not answered the Q. You don't have to of course.
You seem to be saying its a bit of both but it would be nice to see the proportions with evidence.
To say its irrational human behaviour is not good enough. What is it that is casuing that irrational behaviour?
Please don't tell me its survival of the fittest. We been able to make more than we need to survive for about 15000 years now.
RS, it should be (1) but the Home-Owner-Ists keep brainwashing people into (2), i.e. 'irrational behaviour', as SL's anecdote illustrates.
MW You have created a circular argument. Come on you can do better than that. SL's illustrates circualr reasoning too.
If you dont have the evidence we must admit it and do better research.
So... why does the HOI brainwash people?
RS, it's not a circular argument at all. People need a roof over their heads. HOI exploits that need and twists it into speculative bubbles, NIMBYism etc.
RS, you could try looking at history.
AFAICS, back in my parents' and grandparents' day, there was little desire to own a house until you retired, by which time, you'd saved up a bit of money and had the time to maintain the place yourself. Houses were seen as a liability, not as an asset. Then something started the Great Housing Bubble, what and when I don't know. Suddenly people started to make money out of buying and selling property and everyone wanted to be in on the act and nearly everyone could be. HOism was born. It's now been around so long that few of people who can remember the old days don't believe they have gone for ever. Also now people can look back on many decades of increasing prices and think that they must buy if at all possible as soon as possible for fear of getting left behind.
MW "Heck knows what excuses the US NIMBYs use(d) to keep new construction down to such a low level." Do you happen to know if the US is suffering from a housing bubble? If it isn't, then there will be no speculative and panic buying to push up demand and building new homes may simply not be that profitable a business.
MW. We appear to be entering denial mode here. Lets try again (sigh!)
IF... "People need a roof over their heads."
AND "HOI exploits that need and twists it into speculative bubbles, NIMBYism etc."
AND that causes a problem, why do we do it?
Are you suggesting that HOI has a conscience? Please, no!
Bay: Thanks for the hints. I know all this. But why do it if it hurts so much?
What is causing the ignorance and selfishness.
BTW I've got some more trader tenant evidence for you fresh from horses mouth today. You won't be surprised (: Will post later.
RS: "why do we do it?"
HOI is driven by people who actually benefit from it (a very small minority) or think that they benefit from it (more homeowners). Don't forget we live in a world that merrily wages a War On Drugs and all the other nonsense.
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