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Can you then explain why many cities where the population is declining in the US are seeing housing prices go up? For example Buffalo, Pittsburgh and Cleveland?
by momokoko 7y ago
Can you then explain why many cities where the population is declining in the US are seeing housing prices go up? For example Buffalo, Pittsburgh and Cleveland?
- dsfyu404ed 7y agoAre they going up substantially more than inflation over the same time period? Housing stock tends to shrink with population since in a renters market there's less incentive for landlords to keep properties in rent-able condition. For example, an apartment remodel that might have been sub'd out for $10k and done in a month instead takes $5k and is done over the course of a year. When some % of all landlords start doing this to some % of properties it takes a chunk out of available supply and rents stay the same-ish.
- deleted 7y ago[deleted]
- momokoko 7y ago> Are they going up substantially more than inflation over the same time period? Yes, considerably more.
- jdhn 7y ago1. People want to move back to the city. I live near Detroit and you can't go a week without hearing as to how people are moving back into the city, and subsequently driving up housing prices. 2. The Federal Reserve's quantitative easing has artificially pushed down interest rates, which has predictably led to an increase in housing prices.
- cheriot 7y agoI've only paid attention to local markets in DC and the Bay Area. If you know of any good write ups on other markets I'm curious to see what's going on.