Comments on: Why “Affordability” Doesn’t Dictate Home Prices

By: Peter Fugiel

Peter Fugiel — Thu, 14 Jan 2010 01:07:10 +0000

This is a sound approach, because our most expensive cities are all land constrained. The problem arises in big, open markets like Chicago, where prices are sorting out by preferred location, and the trend will continue, now that their price bubble has burst. The pecking order is, best location for condo units in the city, best location for homes in the suburbs, all other home, then all other condo units. Other unconstrained metro areas may have differing pecking orders, but the market to market differences are going to be fun to follow.

By: mike simonsen

mike simonsen — Wed, 16 Dec 2009 23:53:32 +0000

Nathan – that is the dramatically lower inventory. A big deal in phx this year.

By: Nathan Schrenk

Nathan Schrenk — Wed, 16 Dec 2009 23:02:41 +0000

I'm surprised by the dramatic increase in "people per available home" for Phoenix between 2007 and now. Why did that happen?

By: Dan L

Dan L — Wed, 16 Dec 2009 22:03:56 +0000

Nice analysis Mike! The basic rule of supply and demand seems obvious but I've never seen anyone do this analysis by market before.