3 ms·
According to all the generation-war articles, young people don't have any money, so in that view the places desirable to young people would be declining in valu
by zzbzq 9y ago
According to all the generation-war articles, young people don't have any money, so in that view the places desirable to young people would be declining in value.
I have a feeling the truth might be simple. Normal home values are mostly stagnant or down (due to the 2000s bubble), no further explanation needed. Regions that are exceptionally down are just actually in decline economically. Regions that have risen slightly are economically rising. Regions that are exceptionally up are a combination of economic success and intentional real estate manipulation for financial motives (for example, property owners purposefully obstructing the development of new homes, which is a common accusation in bay area threads on this very site.)
- lotsofpulp 9y agoNot necessarily. Young people might not have enough money (or income security) to afford a down payment and mortgage, but they do have enough money to split rent for an apartment/condominium/house with 1 or more other people. And the folks migrating to the desirable cities are probably more resourceful than the ones who are not, but their extra earnings are captured by landlords, who can then use the higher rents to justify higher property prices. Edit: I wonder if it's possible the quantify the role income security, or lack thereof, plays in home prices.