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Should Gov't Pay to Reduce Housing Supply?

Foreclosure sign
Foreclosure sign

The shadow inventory of homes in the United States currently stands at 1.8 million units. That's a nine-month supply. Add to that the current 8.6-month supply of existing homes on the market and you can bet home prices will decline further. Some say destroying the homes to get rid of the excess supply is the only way out of this mess. But who pays?

Should the government pay to bulldoze abandoned, foreclosed homes to shed excess housing supply?

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