Five Reasons Why U.S. Real Estate Won’t Rebound Anytime Soon



Comments (4)

  1. Jonathan says:

    You mention permits as a measure of homebuilding activity – that only applies in areas that require permits for homebuilding; where I live the only permitting required is for a septic system if you are not close enough to connect to a sewer system.
    While I like your work, like most people you focus on the country as a whole or on a few areas with pendulum swings – neither of which helps people in non boom/bust areas!
    For example, in the last 2 years my area has gone up 15% in sales and 10% in price but no one mentions it or the others like it.

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    Art Reply:

    Jonathan,

    You say “no one mentions it”, but that seems to include you. Where is this magical area you live in (and what are the others like it)?

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  2. Jonathan says:

    I live in Southeast Ohio, near West Virginia. In some former industrial/ mining areas like much of West Virginia, rural Eastern Ohio, and similar places, the last “boom” ended 30 to 50 years ago. Many of these places have lost population for years and are now finally stabilizing.

    The discussion I have seen about house price drops has been centered around urban and suburban areas, which while they have alot of people in them, they don’t cover that much land area of the country. I’d like to see more info on how rural prices have been over the last decade. I’ve read that Iowa and Kansas have had big increases in farmland values, but not anything about the countryside in general.

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  3. Jacob Gram says:

    Dear Louis,

    Part of the picture many are missing is that real estate is not universal, and that there is maybe a new trend to look for. Urban centers are heating while suburban and rural areas are not seeing daylight. Catching my drift? I would rather spend my money in Detroit than Southeastern Ohio. Its all about the dirt. If there is plenty of it, well I would be weary, but where it is scarce the story is different.

    I think we are moving to a new dawn of urban living. Big is out, smart is in. More efficient, smaller spaces near amenities is what we will soon see. The days of the beautiful suburbs will be come more like Europe, where the suburbs are the projects.

    So on some points your article may be right, but on others you are missing the boat. Whether we are on the bottom or near the bottom, I truly think the affordability can be better and will not be better in my life time.

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