Why are so many new homes still being built? (prices, building, vent)

[questioner2]

The number of new homes being built has gone down but many are still going up every day. I was recently in Arizona and Nevada and they are having a terrible time selling existing homes in many parts of the State. Huge blocks of new and existing homes are sitting empty with little chance of a sale. But close by, the builders are still putting up thousands of new cookie cutter homes. I do not understand it, why don't they stop the building until the market improves?

The new homes hurt everyone as they flood the market and lower prices for desparate sellers. Can't the City step in and force a stop to this foolishness?

[returnedYinzer]

We live in a disposable society, and we don't care about the waste we create. It helps generate the economy. I mean if people moved into existing homes sitting empty because of foreclosures then nobody will be employed to build, create the materials for, and sell the new homes. Soon these homes will be forclosed and be sitting empty too. America, you got to love it.

[HighPlainsDrifter73]

Originally Posted by questioner2

The number of new homes being built has gone down but many are still going up every day. I was recently in Arizona and Nevada and they are having a terrible time selling existing homes in many parts of the State. Huge blocks of new and existing homes are sitting empty with little chance of a sale. But close by, the builders are still putting up thousands of new cookie cutter homes. I do not understand it, why don't they stop the building until the market improves?

The new homes hurt everyone as they flood the market and lower prices for desparate sellers. Can't the City step in and force a stop to this foolishness?

Perhaps there are contracts in place between various parties that require that so many houses be built within a subdivision and within a period of time. I have heard of these kind of things being required by a municipality before building permits for new subdivisions are issued. Also, why should the city step in and stop this. If the builder can't make any money at it, it's his loss and the new homeowners gain if the new home has to sell for under market value. I would never favor the heavy hand of government at that level. Our society is regulated enough. The market will work that out over time even if temporary disruptions occur. People that go into business assume a risk when they start a new venture. Besides, it keeps construction workers employed and that is a good thing in my book. I would rather see them working then drawing unemployment.

[ara^bess]

I agree with HighPlainsDrifter73. Even though we see the same type of new single family home over-building here in north Florida, there really isn't any way to regulate it as long as the investors/builder involved is willing to take the financial risk. Only the consumers involved can change the trend. However, more energy efficient homes with less initial maintenance are apparently much sought after.

[divinemom]

I see McMansions are still being built but anything less than 2800 feet is on the decline, due to the tighter restrictions.

[normie]

Originally Posted by divinemom

I see McMansions are still being built but anything less than 2800 feet is on the decline, due to the tighter restrictions.

??????
This is either a typo, or someone had too much egg nog for Christmas...

[K'ledgeBldr]

Originally Posted by divinemom

I see McMansions are still being built but anything less than 2800 feet is on the decline, due to the tighter restrictions.

What?
My hair is getting thin from the scratching!

[pennquaker09]

Originally Posted by divinemom

I see McMansions are still being built but anything less than 2800 feet is on the decline, due to the tighter restrictions.

I agree with that.

[Noahma]

Mcmansions are on the decline (see discription of Mcmansion in another thread) , large custom homes above 1 million dollars are in the incline, they have doubled in construction in the past couple years in colorado. homes below 2500 sqft. are still being built, but definatly not in the amount they were.

[GracieJJ]

Originally Posted by returnedYinzer

We live in a disposable society, and we don't care about the waste we create. It helps generate the economy. I mean if people moved into existing homes sitting empty because of foreclosures then nobody will be employed to build, create the materials for, and sell the new homes. Soon these homes will be forclosed and be sitting empty too. America, you got to love it.

Very true..

Its all about the numbers, and you and i are just that.