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Originally Posted by Rodney
Deflation will probably take place in real estate, certainly -- either by actual price drops, or by a prolonged stall in real estate prices while general inflation continues to rise. (So a $500K house today is a $500K house in seven years -- but the price of all other things has gone up by 50 percent).
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The US population is going to grow by about 30 million people in the next seven years.
Using an average of 4 per household, we will need to build 7.5 million new homes in the next 7 years simply to keep pace with projected population growth.
If we factor in homes needing replacement/second homes for baby boomers/vacation homes/and Oprah, I guess we would need to build close to 1.25 to 2 million homes per year.
With that kind of demand in the face of limited land resources and increasing slow or no growth cities, I don't see how we could have a prolong stall in real estate.