AEIdeas

The public policy blog of the American Enterprise Institute

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  1. This is misleading, in no small part because there’s a lot of homes built still on the market that are in the shadow inventory.

    After all, there was a huge housing bubble as we all know in the mid-2000s, so beginning the chart at the beginning of the housing bubble is a trick only a petty hack would use.

    Second, as the shadow inventory is continually being whittled down, there isn’t as strong a need to build new houses before it’s entirely worked through, and that is still 2-3 years away.

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