It was only a matter of time until housing deflated (like textiles, tulips, food, and media, etc.), as a result of efficiency, modularity, and better cost-structures (think Home Depot in every town, developments in previously unimaginable places). This deflation was bound to be precipitated by a bubblicious hyperinflation that drove the systemic innovation that eventually lead to a glut, high vacancy, etc. This trend will only increase as technology makes more and more of the vast empty earth livable, and as modularity decreases the production costs of housing. Housing is finished as the principle asset of the US economy.
Vacancy rates are soaring. While they may go back down in the next two to three year, the armies of cheap labour will keep building until there are two houses for every man, woman and child. The more we speculate, the more power reason gains to obliterate our greed...
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So, if housing deflates like textiles, etc, then what will the next commodity fetish be? And, since we're on the textile topic, why is it that certain geniouses out there continue to pay $40 dollars for a t-shirt, when they can buy one for $1. Is the 'designer house' where we're headed?
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