BLOODHOUNDBLOG.COM

There’s always something to howl about

Why the Housing Bubble hit some areas harder than others.

I don’t know if you’re familiar with Randall O’Toole from the Cato Institute, but he’s much better reading than Lawrence Yun.  I was just acquainted with one of his latest works entitled How Urban Planners Caused the Housing Bubble.

If you’re in real estate, it is a must read.  I live in a strict Growth Management state from a public planning perspective.  As a freedom loving individual, it is frustrating.  But this analysis not only talks about the costs of planning, but the volatility it introduces into the market and why.  It compares different policies of various states.

The correlation between planning practices and pricing volatility is uncanny!  Fed policy, the Community Reinvestment Act and other hair brained political practices can’t explain the phenomenon without the inclusion of growth managment into the equation.  The costs for growth managment are also staggering!  For real estate nerds, it is required reading!

Related posts:
  • Oh, good lord! They’ve got one of our own!
  • Zero Hedge: “Presenting: The Housing Bubble 2.0″
  • “Americans will downsize and live multigenerationally, in order to offset the fraud they know exists in real estate. Until there is wage growth, and that could be years or decades away, people will not trust any upward movement in real estate values.”

  • 1 comment

    1 Comment so far

    1. Benjamin Ficker October 14th, 2009 7:15 pm

      I spent the first 4 years of my real estate career in Portland OR, where the Urban Growth Boundary was the thorn in every builders side. Home prices definitely went up during the bubble, but not even close to the rate that other parts of the country (Phoenix) saw. Now, their sales have slumped and the prices have dropped slightly, while in Phoenix you can meet people who owe 3x what their home is worth.