Bubble Rap: It’s Not What’s Next That Matters Now; It’s Who Can And Can’t

The issue now, for residential builders, developers, investors and partners, is not “who’s right about what’s coming next?”

Price tolerances — at least in some markets and submarkets — have peaked. Uncle Sam’s firm helping hand on the mortgage interest front may even have stretched that elasticity too far.

St. Louis Fed economist William R. Emmons notes,

The critical consumer insight, research, and analysis job for developers, investors, and builders, right now, has to do with a great rotation — or not — of people who can and will pick up and move for the blend of livelihood and lifestyle.

And who can’t.

Who can’t move is equally important for people in housing to learn now, as housing opportunity includes fewer people, and eludes more.

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