This article in
Financial Sense makes the case that available supply net teardowns far outweighs demand. I'm mainly just posting the figures, which are based on data from the US Census Bureau, as they speak for themselves:
"To maintain this rate, the new supply should be slightly more than 6% higher than the new demand. Thus, the supply running slightly ahead of demand is a normal thing. However, over the past 10.5 years, the supply (increase in total units) has exceeded the demand (increase in occupied units) by 35%! If we look at the last 3 years, the increase in the supply over the demand is 59.3%; and for the last 6 months it is in excess of 100%. At no time during the past ten years has there been any supply shortage. And it is not going to be the case over the next two years."
[The above graph shows] "the Supply-Demand mismatch with the supply being in far excess of the fundamental demand."
3 comments:
Love your use of Kubler-Ross. I think there will be plenty of anger and depression in the future. I just feel it is so unfortunate that it has come to this.
eye opening charts!
Marinite--have you found supply/demand stats for Marin specifically? I'm tired of hearing of the "low supply" argument for Marin's pricing--but I'd like to see stats for a reality-check.
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