How overhoused is the USA?

The US Census bureau estimates for July 2007, approximately 128 million housing units. The average size is over 2000 square feet per unit. Together these combine to over 256 billion square feet or about 840 square feet per person. Were the US to have an Asian level of space use - about 300 square feet per person - the nation's housing stock could house about 850 million people, almost three times the current population!

Put another way, about 2/3 of the nation's housing stock is redundant. Even more directly put: becoming worthless!

But why should Americans be content with cramming themselves into Asian-sized houses? Because Americans are going to be enjoying Asian-sized incomes in the not too distant future, and even smaller incomes in the more distant future. It is presently a terrible waste of resources to maintain, or even just heat and cool the excess housing. The funds for that waste will be unavailable, and soon.

Which are the houses that will be abandonded? Generally three categories of building will be most likely to go: houses in metropolitan areas or rural counties with poor economic prospects and declining population; dilapitated, older housing or shoddily-made newer housing; houses away from city or town centers. When a building belongs to all three categories, it is a sure loser.

Ironically, at a time when large migrations are in order, many Americans will perceive themselves stuck in collapsing locales: unable to sell a house because it is worth less than the mortgage; unable to convert housing equity in the decling area to housing equity in a stable area because of the price differential. In such a circumstance it would be best to just walk away, but sentiment and inertia will sometimes prevent this.

If you want to avoid loss in the housing collapse, don't buy a house unless it is near a real town centre. Make sure it has a high Walk Score. If you already own a house that may not have much of a future, consider disinvesting yourself of it, pronto.