There is an element of cost in that too. Things that used to draw a premium like lumber, sheetrock, even appliances, have come down in price. You can build cheaper now. Further, you have your pick of cheaper labor. No more $40 an hour framers around here. Lucky to make $15 an hour. I asked around and most carpenters will hedge a little but are building houses that cost 80-90% of what they cost in 2007. And lots...basically free around here. You can build all the spec homes you want on lots costing no more than $10,000. The banks have loads of 'em for sale.