July 11, 2012
In a city where housing prices have fallen by more the 50% a small amount of construction has begun again in the outlying neighborhoods where housing stopped in 2008. The cost of building a new homes makes the construction only modesty profitable if at all.
Many of the banks and investors are holding the homes and waiting for prices to rise to turn a profit. This degrades the amount of homes on the market and any need for a house to actually live in is harder to find artificially driving prices up.