Supply and demand are off
Based on a comparison of housing preferences, America has too many big-lot housing and not enough small-lot and attached housing. Supply and demand are officially off. Studies show this isn’t a new phenomena, building hasn’t been meeting the trends in some time.
The chart below is from the New Urban Network blog showing a comparison in studies by the National Association of Realtors, University of Utah and Robert Charles Lesser & Co. in comparison with current inventory and existing homes.
The general rule of supply and demand is (say it with me), when supply is higher than demand, prices decline and when demand is higher than supply, prices rise. Look for prices in the future of wide lot suburban housing to decline in comparison to urban housing with smaller lots.
Is this happening yet in your city?