Big City Modeling Agencies examines why the industry is building homes at an annual rate of fewer than 600,000, and that's not enough to keep up with the number of new households that are being formed. Eventually, the argument goes, the recovering economy will spur more people to get back into the housing market, providing a big boost to beaten-down home-building stocks. There are still risks, of course. Even when the economy fully recovers, some analysts expect people to buy smaller, less-expensive homes, which could temper revenue growth.
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