New Housing Construction Starts

[Jerry Stanford]

I listened to economist Diane Swonk from Chicago a bit this morning. She noted that new construction builders were not happy as they were not seeing the  margins they wanted for the demand they have been getting for new construction.  Two things come to my mind...1) If the new construction is slowing then the demand may shift to buyers looking for rehabbed homes...2) If #1 is happening then those buyers may be looking for rehabs that are at the level of a new construction which may raise the costs of rehabs.  Any thoughts on this??