Getty images; Tyler Le/BI
There's a weird contradiction happening at the base level of America's real estate market. Faced with high borrowing costs and an uncertain economy, homebuilders — the engines of the country's housing supply — are cutting prices and tacking on freebies in an effort to keep sales moving. At the same time, they're also staking out huge swaths of land in anticipation of the next homebuilding boom. The land grab is a signal of faith in the long-term demand for housing, a bet that the sluggish market will turn around, and a recognition of the country's deep housing shortage. It could also end up paying huge dividends for regular homebuyers.
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