If there's a mismatch between the type of housing inventory and the type of housing demand, why has the demand for apartment style condos been strong?  Shouldn't there be a large inventory of unsold units and shouldn't the market price of these units be stagnant if the demand is for single family homes and not apartment style units?  If condo projects were truly not selling well developers would change the floor plans, i.e. three bedroom units to attract families.  The vast majority of new units that have 3+ bedrooms are the penthouses, which cost more than a modest house.