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> Most of the US is not experiencing economic growth, and is probably actually experiencing deflation due to decreasing economic potential and population. Lite

by mrep 7y ago

> Most of the US is not experiencing economic growth, and is probably actually experiencing deflation due to decreasing economic potential and population. Literally every single US state is experiencing growth [0]. > I don’t see the purpose of lumping in data from those places with the urban areas that most people want to live in and are able to find work and economic growth. Most people aren't software engineers and for those that are, there are still plenty of job opportunities outside the bay area. Pretty much every fortune 500 company needs some software engineers and they are spread throughout the US. > The inflation in rent and real estate is very real because more and more people want to (and need to) live in a smaller and smaller area, which also causes everything else to increase. No, it't not [1]. You can sample this yourself by opening up zillow and putting a 250,000 dollar limit and you can find housing pretty much everywhere. Again, most people don't live in the bay area. [0]: https://en.wikipedia.org/wiki/List_of_U.S._states_and_territories_by_economic_growth_rate https://en.wikipedia.org/wiki/List_of_U.S._states_and_territ... [1]: https://fred.stlouisfed.org/series/CUUR0000SEHA https://fred.stlouisfed.org/series/CUUR0000SEHA

lotsofpulp 7y ago
Cities and surrounding areas in each state may be experiencing growth, but not the whole state. And even between cities, it's a very uneven balance. It's a different game in the tier 1 cities/suburbs versus elsewhere, and the issue isn't that there are richer areas and poorer areas, the issue is that the gap between them is getting larger. https://www.redfin.com/blog/data-center/ https://www.redfin.com/blog/data-center/
- mrep 7y ago
  Please define your "tier 1 cities/suburbs" and why they are "tier 1".
  - lotsofpulp 7y ago
    Where many rich people compete with many other rich people to live, evidenced by higher than average home prices and higher than average increases in home prices. In the redfin link, the difference between national median sale price and cities such as SF/NYC/LA/BOS/DEN/etc is huge, and growing! There is clearly a migration of money and human resources from many areas into fewer regions of the nation. Cities like Indianpolis/Minneapolis/Nashville/etc are also growing, but I bet the areas around them are not, because people are migrating to the urban areas.
    - mrep 7y ago
      > Where many rich people compete with many other rich people to live, evidenced by higher than average home prices and higher than average increases in home prices. That's just a proxy for good wages but you can find good wages in tons of other cities. I earn a 10% lower salary in chicago then I did in the bay area or seattle but I make up for that many times over by being able to afford a 5000 square foot house in chicago in one of the best public school districts compared to a 1000 square foot house in the bay area in a mediocre school district. The difference: Chicago and most other cities geography allow them to sprawl and there is still plenty of undeveloped land keeping land prices low whereas the bay area basically has 2 5 mile wide strips of land for single family homes and there is none left to develop which is why your housing prices are exploding. So while you consider tier 1 cities to be ones in which everyone lives in tiny homes spending all of their money on home mortgage interest rates because land is scarce, I consider tier 1 cities to be ones which pay well and also have affordable housing allowing me to invest money I would be spending on mortgage interest rates in your tier 1 cities.
      - deleted 7y ago
        [deleted]

by mrep 7y ago

lotsofpulp 7y ago

Cities and surrounding areas in each state may be experiencing growth, but not the whole state. And even between cities, it's a very uneven balance. It's a different game in the tier 1 cities/suburbs versus elsewhere, and the issue isn't that there are richer areas and poorer areas, the issue is that the gap between them is getting larger. https://www.redfin.com/blog/data-center/ https://www.redfin.com/blog/data-center/

mrep 7y ago
Please define your "tier 1 cities/suburbs" and why they are "tier 1".
- lotsofpulp 7y ago
  Where many rich people compete with many other rich people to live, evidenced by higher than average home prices and higher than average increases in home prices. In the redfin link, the difference between national median sale price and cities such as SF/NYC/LA/BOS/DEN/etc is huge, and growing! There is clearly a migration of money and human resources from many areas into fewer regions of the nation. Cities like Indianpolis/Minneapolis/Nashville/etc are also growing, but I bet the areas around them are not, because people are migrating to the urban areas.
  - mrep 7y ago
    > Where many rich people compete with many other rich people to live, evidenced by higher than average home prices and higher than average increases in home prices. That's just a proxy for good wages but you can find good wages in tons of other cities. I earn a 10% lower salary in chicago then I did in the bay area or seattle but I make up for that many times over by being able to afford a 5000 square foot house in chicago in one of the best public school districts compared to a 1000 square foot house in the bay area in a mediocre school district. The difference: Chicago and most other cities geography allow them to sprawl and there is still plenty of undeveloped land keeping land prices low whereas the bay area basically has 2 5 mile wide strips of land for single family homes and there is none left to develop which is why your housing prices are exploding. So while you consider tier 1 cities to be ones in which everyone lives in tiny homes spending all of their money on home mortgage interest rates because land is scarce, I consider tier 1 cities to be ones which pay well and also have affordable housing allowing me to invest money I would be spending on mortgage interest rates in your tier 1 cities.
    - deleted 7y ago
      [deleted]