THE OVER-HOUSED ECONOMY
In a recent analysis summary Torto Wheaton Research concluded that a major factor in the housing markets and how soon they would return to more normal markets is the number of vacant homes in the United States. This inventory of 18 million vacant homes (including seasonal homes) represents 14% of the total housing stock.
New foreclosures that are taken back by lenders add to the supply and houses sold and occupied by owners or tenants reduce the supply. New homes finished by home builders, of course, add to the supply of vacant homes until they are sold. New family formations that result in new units being occupied reduce the supply of vacant homes.
Torto Wheaton believes that a continuation of current demographic and economic trends should mean that the excess inventory of vacant homes should be reduced to normal levels by sometime in 2009.
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