Here's a video I just found that echoes what you are all talking about.
Whether or not the siding shrinks (as this video states it does slightly) -the bottom line is that I do have 1/8 inch gaps all over my house where the siding meets up. I'll have to peak into a gap in the AM to see if there is house wrap or tar paper. But let's assume there is. We have 80 homes in my neighborhood all built in 1998 north of Atlanta.
I see this issue around my neighborhood. People caulk the gaps, but the caulk job is never perfect - so caulk gets onto the siding and the visible lines are extremely unsightly.
This guy's video illustrates the exact problem. Caulking those gaps is a frequent maintenance thing. If you were getting your whole house repainted - sure - you could probably caulk and minimize "the caulk lines"and get them to blend. But in 6-12 months - cracks would be back.
Another issue is that even if there is wrap - there are tons of nail holes through it. If it's compromised at any place down the wall under ANY of those hundreds of siding gaps - water will be into the wood. It could be 15 feet down the wall from the gap in the siding.
So caulking is a horribly unsightly fix.
But JAYDEVRIES - can you tell me more about your solution? I like it. In fact - I've already been searching for just such a fix and I'm surprised someone doesn't sell it already.
It would seem like you could cut a triangle shape (pointed up) and craft some tool to hold it, then pry up the siding just slightly at the gap and hammer this piece up behind the gap. Even coat it with some sort of slippery glue.
If not enginnered correctly - I suspect this could add to the issue.
Anyone heard of a product?