I can understand Chicago (too much crime) and Las Vegas (too hot and gambling is the only industry). But why is California increasing? I thought all the celebrities and the techies were leaving?
Anon1970
2 years ago
As Mish has noted in prior articles, Chicago is a very troubled city, with high taxes, lots of crime and big spending Democrats. It has not had a Republican mayor since Big Bill Thompson lost his re-election bid in 1931. But it is not as badly off as St. Louis, Baltimore and Detroit, all three of which are on Wikipedia’s list of the World’s 50 murder capitals. My guess is that Las Vegas will recover in the next few years. Covid-19 was especially harmful to its tourist based economy.
xbizo
2 years ago
Has the house payment gone up or down?
KidHorn
2 years ago
Rent prices are determined by supply and demand like everything else. Renters can only charge what their tenants are willing to pay. I think a big headwind for rent is going to be people working remotely. Work in an expensive area while living in an inexpensive one is now an option few had before COVID.
Eddie_T
2 years ago
The dollar is still fading and gold and silver are trying to bounce this morning. I don’t expect much, probably not even a good enough bounce to sell into….most analysts still see more downside for the metals. The bullish behavior has gone away for the moment. I’d be happy to be wrong.
Doug78
2 years ago
Think about all the fun government real estate tax assessors are going to have. Think about the joy in the heart of local politicians who are looking forward to spending on pet projects all that new tax revenue being created. The cities desperately need more LGBTQIA+ and minority coordinators to coordinate whatever. Too bad SALT is still the law of the land.
Eddie_T
2 years ago
OT…Anybody read Marin Katusa’s new book? I ordered it today. I think it might be worth reading.
2/ private equity has been buying up houses like they were during the last bottom when they were scooping up reo and short sales. since they don’t like to lose money and they are acting the same way now, chances are this is a bottom in house prices.
this is a top right now, but prices will keep going up and when you look back after 5 years, these prices will look like they were a steal. because the net worth of the bottom 50% is unchanged or going down, doesn’t mean that there aren’t people with more money than they know what to do with. and they are the ones buying up houses.
Mish
2 years ago
Added this to my article
Important Note
Those are NOT median prices. Case-Shiller tracks resales of the exact same home over time.
Eddie_T
2 years ago
So Chicago is such a big city, and it has slums…so I think it’s harder to judge what’s going on. You can take some desirable neighborhood in Chicago, like maybe Lincoln Park, and RE prices are pretty high and probably headed higher,…some neighborhoods are always being gentrified…..and some neighborhoods have stray bullets killing people sitting on the stoop.
That might be also true for NYC…..I know someone who recently bought a very small condo in Brooklyn for over 900K. Too much is blurred by looking at median price trends. The kind of available housing situations that are desirable are not cheap anywhere in any large metropolitan area, I don’t think.
Added this to my article
Those are NOT median prices. Case-Shiller tracks resales of the exact same home over time.