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What should be more worrying than all that is the correlation between local housing prices and the local labor market. Take Detroit, for example: it had both pl
by ThrustVectoring 7y ago
What should be more worrying than all that is the correlation between local housing prices and the local labor market. Take Detroit, for example: it had both plummeting real estate prices and mass layoffs from the big automakers in 2007/2008.
And if you're working, you're already exposed to changing conditions in the local labor market. Owning your house exacerbates this in the worst way, just like how the very last company you should own stock in is your employer.
- Alex3917 7y agoExactly. I like the idea of owning a house, but the idea of not only investing in the real estate market, but investing where I live is insane. If I'm in the NYC labor market then I feel like if I were to own real estate then I should be hedging my risk by owning in Austin or something.
- ThrustVectoring 7y agoDifferent careers have different amounts of local correlation - I'm planning on waiting on buying a house until I get established as a remote programmer, then buying in a relatively low COL area.