The figures above do not tell us that all home values have risen or that every property is a good investment. Instead, what they say is that in the general case the demand for housing has been strong and remains strong because real estate has been a good place for most people to put their money.

The other number that should interest everyone comes from Fannie Mae: In ads broadcast in the Washington area, Fannie Mae says that "The population is growing, and with it the American Dream of homeownership. In fact, with four million babies born in this country each year and millions more families moving to this country in pursuit of the American Dream, we expect the population to grow by 30 million by 2010."

Imagine the U.S. with 30 million more people in just a little more than six years. How are we going to house so many people?

Let's assume that our 30 million additional citizens will want to live in today's major population centers. Do you think commuting might be a little tougher? Do you think home prices will rise or fall given increased demand?

It would be nice to suggest that new home construction will handle the load, but that seems unlikely in a world where development is loudly opposed every time an unusual rodent, gnat or flea rambles within 40 miles of a given site. And "smart growth" advocates, who want to restrict development, only add to the problem.

Past results surely do not guarantee future trends -- but past results plus the addition of 30 million people are hard to ignore. If you want to know one reason why real estate demand will remain strong in the future, just look at the nation's delivery rooms, airports and harbors.

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