Bubble, bubble, toil and trouble
This report (page 19 in particular) shows that Portland currently has the 11th most overpriced housing in the country. Coming in at no. 1 nationally? Bend.
| Posted at 12:58 PM | Permalink |
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Comments (7)
I did a post about this on Friday...you need to visit my blog more often Jack!
Posted by Clint8200 | April 26, 2008 3:42 PM
From the Wikipedia entry for Global Insight:
"On September 12, 2007, Wal-Mart introduced new advertising with the slogan, "Save Money Live Better," replacing its slogan of 19 years, "Always low prices". It commissioned Global Insight for the ads and the report stated that as of 2006, the retailer saves American families $2,500 yearly (up 7.3% from $2,329 , 2004). The new research found that the reduction in price levels due to Wal-Mart resulted to savings for consumers of $287 billion in 2006, which is $957 / person or $2,500 / household."
Posted by PMG | April 26, 2008 5:41 PM
Works out nice for National City, doesn't it? The areas where they lend the most on houses also happen to have the most reasonably priced houses.
Posted by Luke | April 26, 2008 7:47 PM
National City had to raise 7 billion dollars this week to keep the balance sheet ‘legit’. I wouldn’t call that working out nice.
Posted by Clint8200 | April 26, 2008 8:24 PM
Luke, are you discounting the study? I find it interesting and close to true in several metro areas I have knowledge. The measurement factors used in the study make sense compared to some local politicians and planners that think because our average housing units cost $295T on average versus a Calif. home at $490T, that we are better off.
Posted by lw | April 26, 2008 8:39 PM
PMG, thanks for quoting the study Wal-Mart commissioned for itself. But buying poorly made things that break, and then buying them again, is no way to save money in my opinion.
Posted by Portland Gentrication | April 27, 2008 12:22 PM
JK:Thanks for the lead, I added it to my collection at ProtlandFacts.com. Here are the others - they all have a common theme: Regions with lots of land use controls, like Metro’s wall (the UGB), have over priced homes. O’Toole puts Portland at double what they should be.
DebunkingPortland.com/Housing/housing/HIER1948.pdf
DebunkingPortland.com/Housing/housing/0306glae.pdf
DebunkingPortland.com/Housing/housing/brightideasSpring2004regbarriers.pdf
economics.harvard.edu/hier/2006papers/HIER2124.pdf
cato.org/pubs/regulation/regv25n3/v25n3-7.pdf
DebunkingPortland.com/Housing/housing/ps207.pdf
hpci.coldwellbanker.com/hpci_full.aspx
cato.org/pubs/pas/pa602.pdf
ofheo.gov/HPI.asp
DebunkingPortland.com/Smart/DensityCost.htm
To you doubters, note the wide variety of sources: US Gov’t, Harvard, Brookings, Cato.
Seattle times, February 15, 2008:
“Between 1989 and 2006, the median inflation-adjusted price of a Seattle house rose from $221,000 to $447,800. Fully $200,000 of that increase was the result of land-use regulations, says Theo Eicher — twice the financial impact that regulation has had on other major U.S. cities.” (seattletimes.nwsource.com/cgi-bin/PrintStory.pl?document_id=2004181704&zsection_id=2003910421&slug=eicher14&date=20080214)
But, of course the planners at Metro just know all the above is BS and the law of supply & demand has been repealed for Portland. It is time for the developer/Smart Growth Crowd to admit they are screwing people by making their living cost for housing about double what is should be.
Metro, “tear down your wall”, “we need living space.” Let us be free once again!
Thanks
JK
Posted by jim karlock | April 27, 2008 2:40 PM