Residential Construction motivated by Need or Profit?

FACTS:

--Calaveras County population growth is approx. 2%-3% annually*

--Single-family moderate- to high-income housing construction grew between 26%-34% annually in 2003 and 2004*

--Our projected need for "moderate to above" housing is 2,003 units from 2001-2009; the number already built by 2004 in the county was 2,375!*

--Our "affordable" housing construction has been much slower, and has not made much progress towards reaching projected needs*

SUMMARY:


Based on current growth projections, there are already sufficient homes permitted or constructed in the middle to upper price ranges to meet demand for those types of homes in the County through 2009. We are building more moderate and high-income housing than we need (and not nearly enough workforce and affordable housing).

Do we need to continue to build houses at this rapid rate, or does this have a profit motive? We hear cries of "there is demand!", but are we actually creating a demand by building subdivisions for everybody who wants to leave the city?

[* Data from Calaveras County Housing Element Report]

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