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Is your suggestion that overproduction of housing is what caused the bubble?


I could see overproduction of housing as a sign of the bubble. E.g. why are we suddenly giving out more loans?


New large generation (Millenials) coming to the housing market. Low interest rates driving folks to refinance. New housing is flat YoY if you look at "House Starts" statistics.


It was a lagging effect of the bubble. The 'build anything, people will buy it' approach resulted from people's excessive faith in housing and the widespread idea that prices could only appreciate, which I take to be the true cause of the housing bubble.




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