No. of Recommendations: 0
So, FEWER future homes to be built as a result (not affordable). And thus, fewer home builders (and fewer jobs in the construction trades).
Ah, but they make more profit on each one they do sell. That is the strategy the CEO of Ford articulated, a few years ago, when he announced he wanted to abandon the 2-row SUV market. The 2-row market is huge, but, Farley cried, there was too much competition to charge as much as he wanted to. So abandon, the segment, only offer huge 3-row, SUVs, then close plants and lay people off to "right size" the company for the lower, but more profitable, volume.
With 50 year financing, Pulte could shift more people into 5,000sqft McMansions, instead of 3,500sqft McMansions, and take more money off them.
Steve
