[Always Right]

Supply and demand. As the demand for older ("untaxed") homes rise, their prices will too, until the cost advantage of old vs. new settles back to equilibrium again (people will pay extra for new homes because they believe they get extra value for them).

90% of home builders will be in bankruptcy as they wait around for thie equilibrium.

[kevkrom]

90% of home builders will be in bankruptcy as they wait around for thie equilibrium.

Somehow I doubt that. I've seen how fast housing prices can move -- in both directions -- based on changing economic conditions, or even perceptions.