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America has a housing shortage.
The improving labor market is expected to create more demand for housing over time, as those who moved back in with their parents will slowly begin to contribute to household formation.
It’s become an increasingly common refrain that supply (or more specifically, lack thereof) is one of the key factors holding back the housing recovery.
Now one of America’s biggest homebuilders has given us the sheer scale of it. On an earnings call on Thursday, Lennar CEO, Stuart Miller, said the U.S. now faces a 4 million deficit in homes (emphasis ours):
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