My Home Depot

Why are many construction companies continuing to build homes when so many are in foreclosure?

Where I live in Northern California, there are several new home developments going up, and just as many homes on foreclosure listings,to me it doesn't make sense to keep building homes, that people obviously can't afford.

Public Comments

1. They are really only completeing existing projects (in the pipeline for a while, with some already sold) I also live in Norcal, and I know a LOT of construction workers w/o jobs! On one hand, it doesn't make sense to keep building, but these guys are running out of jobs!
2. They have work crews that they have worked 15 years to assemble. If they lay them off, they will never get them back to work when things get good. And hope springs eternal. The boom could return tomorrow. Stranger things have happened.