At the risk of stating the obvious, housing is cyclical. Booms lead to oversupply, which leads to lower prices, which leads to a bust. Busts lead to undersupply, which leads to higher prices, which leads to booms. Today we’re at the point where undersupply has led to higher prices, incentivizing builders like NVR to increase supply.
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NVR And The Housing Cycle
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At the risk of stating the obvious, housing is cyclical. Booms lead to oversupply, which leads to lower prices, which leads to a bust. Busts lead to undersupply, which leads to higher prices, which leads to booms. Today we’re at the point where undersupply has led to higher prices, incentivizing builders like NVR to increase supply.