HBAS #2: 'They are Not Making Anymore Land"

One often heard housing bull argument (HBA) is that 'they are not making anymore land' and thus housing unit prices will go up because supply is constrained. While it is basically true that they are not making anymore land, land is not the same as a housing unit. Consider these points:

• They may not be creating anymore horizontal land, but 'vertical land' is being created at a furious pace. Condos are vertical land.
• In many of the bubble cities there is plenty of land to sprawl onto (think Sacramento, Phoenix, Boston etc.)
• Land is being made available through various sources such as the BLM ( Bureau of Land Management) and base closings.
• Certainly, they were not making anymore land during the early 1990's housing crash.

The Housing Bull Arguments Series will continue. If you have any suggested topics for upcoming posts in the HBAS please post in the comments.