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| Re: Now Coveted: A Walkable, Convenient Place (944868) | |||
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Re: Now Coveted: A Walkable, Convenient Place |
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Posted by WillD on Sun May 27 02:19:21 2012, in response to Re: Now Coveted: A Walkable, Convenient Place, posted by Dan on Sat May 26 18:50:01 2012. Except it's not. In fact the comparisons drawn in the article are the complete opposite of the strawman you've conjured to dismiss it. The article sets up several comparisons within the same MSA in which the prices for suburban houses were higher than those for in urban areas 15 years ago, but the situation today has reversed itself. In that case they wouldn't compare Greenwich Village with any suburban area because demand has been high in Manhattan for the past few decades. The article says nothing as to the income of the people inhabiting those dwellings, only to the price of the houses within the community.This is of course slightly problematic as the suburban communities with higher prices 15 years ago were likely the result of desirability in the face of relatively low energy prices. To that end those suburban communities likely had their real estate values inflated by the pseudo-subsidization created by the adjustable rate mortgage and thus the comparison is slightly unfair. Furthermore, the cost of housing may not be a reliable indicator of the income, particularly in the ARM's reign of terror, because people were buying far more house than they could afford. It may well be that Redmond, WA and Capitol Hill in Seattle had the same price per square foot for real estate, but it's possible (and IMHO, likely) the people buying in Capitol Hill were living more within their means, and thus earning slightly more, than those purchasing suburban McMansions on ARMs while chasing raises, options, and promotions to afford the balloon payments.. But despite those problems drawing conclusions from the study, it cannot be denied that some urban areas, reviled and written off less than 20 years ago, as well as transit oriented and walkable suburban areas, are making a definite comeback and now commanding higher real estate prices than previously desirable car oriented suburban communities. Whether this is due to a reduction in real wage value and a desire to reduce property tax burden, an unwillingness to purchase (or, for the banks, lend) more than the homeowner can afford at the time of purchase, because energy prices are so high, or some combination of these factors or some additional elements remains to be seen. |
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