Politics – Dan Walters: Population increases drive state – sacbee.com

The above article from the Sacramento Bee reinforces my belief that the population growth of California will soon/someday turn home prices in an upward direction again. A quote:

“Those 438,000 additional Californians (the state number) will generate a need for at least 150,000 new housing units, which means that while the housing industry has been clobbered and there are many vacancies, within a year or two, demand will catch up.”

The numbers are the annual growth rates. Those that believe in the never-ending housing bear market seem to fail to understand where 400k new people in California are going to live. And with the price downturn in California approaching it’s 3rd birthday, I think 2008 could bring some surprises.