I was reading Calculated Risk on negative absorption rates in Santa Maria.
Certianly through the history that any of us can remember there has always been a demand for increased housing for population growth. There have been a few areas with negative population growth, but mostly the increase in the number of people every year has meant that there has been constant increasing demand and price support.
I think we are coming to the end of the era where population growth carries investments. I think we are moving into an investment world where population stabilizes, and has many more areas with negative absorption rates or flat populations.
I think this is going to change people's understanding of investments.