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How Serious Is the Housing Oversupply?

Reportedly, there are something like 20 million excess housing units (counting condos, town houses, etc.) in the United States. (OK, the official number was more like 19.7 million, but who's counting hundreds of thousands?)

How serious is this? The population of Mexico is just over 100 million, and they, at least, average something like five people to a house. If we moved the whole population of Mexico north of the Rio Grande, we would (barely) create a housing "shortage" by accomodating all of them. Come to think of it, this is what is actually happening--in bits and pieces.

Where did this oversupply come from? It stemmed from demand for second homes by Baby Boomers, and from their children, the echo Boomers, for starter homes. Now that the economy has turned south, Baby Boomers are pulling back from second homes (and delaying their retirement plans). And many of the kids are moving back with their parents. Plus a number of "homes" were "spec" buildings, like Florida condos. All this came about because rising housing prices over ten years created an artificial demand for units, with new home starts formerly running at TWICe their historical rates, still running at about historical levels.

How will this problem be resolved? Perhaps half the excess supply will be gutted, a quarter filled by immigrants, and a quarter filled by natural demand from existing residents. But that could take a decade or two. In the meantime, does anyone have any ideas for uprooting houses and shipping them to Mexico (or China) where there is real demand?