Yesterday’s Austin Statesman quoted a local economist who said that construction will pick up in the next two years due to “pent up demand”. I thought that was an interesting contrast to the following ad in yesterday’s Austin Craigslist:
The bank took away our houses and now we’ve combined households to move into a house 1/3 the size. That means a LOT of stuff that has to be sold or we’ll have to walk away from it. For example, we have:
The ad goes on to list many expensive goods such as “antiques” and “original art”. This was not a subprime loan.
Yes, the Craigslist ad is only one data point. It is one more data point however, than the data provided by the Statesman. Too often “real world” evidence such as this is passed over in favor of unsubstantiated, hopeful projections.
When the economy improves and jobs are once again plentiful, certainly families like this will be anxious to once again have their own homes and more spacious quarters. Until that happens however, the trend will be “downsizing and combining”, not “pent up demand”.