Why were new construction rates depressed? It seems bad for the structure of our housing economy that we've had such a bull run in real estate over the past decade and the supply couldn't catch up and profit off of it. Too little too late shouldn't have been possible according to free market theory, but here we are with far too little much too late. I wonder what failed? Zoning changes in the last 10 years? CEQA and similar abuses becoming more prolific?
The crash drove home builders to bankruptcy and construction isn’t generally a trade to can just get into without some training and experience. I’m sure government over regulation doesn’t help but outside markets like SanFrancisco where they are hostile to new development I doubt it is a primary factor in prices.
