Comments on: Risky Real Estate http://www.creativeclass.com/_v3/creative_class/2007/07/31/risky-real-estate/ The source on how we live, work and play Wed, 07 Dec 2011 18:10:07 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Wendy http://www.creativeclass.com/_v3/creative_class/2007/07/31/risky-real-estate/comment-page-1/#comment-1722 Wendy Tue, 31 Jul 2007 22:05:26 +0000 http://zstation/creativeclass/v3/creative_class/2007/07/31/risky-real-estate/#comment-1722 Lowest vacancy rates (for rentals) seem to be in geographically constrained places (NY, LA) that have strong, dynamic economies. So limited supply and barriers to entry are factors affecting vacancy rates and rental rates. In the superstar cities, I suspect that there is an international ownership distinction between high-end condominiums and single family homes (or low rise duplexes and townhomes). At least in Vancouver, the global jet setters seem to prefer the condo route, likely because they are low maintenance. You can close and lock the door and leave for three months and all is perfectly safe. A vacant single family home or duplex requires a caretaker. Certainly, some jet setters (or pro-sports stars) own single-family homes they only occupy a few months of the year, but I think this is the exception rather than the rule. So, high condo prices may be driven up by global $, but high single family housing prices are based more on local factors (although there is certainly some interplay between the two). Lowest vacancy rates (for rentals) seem to be in geographically constrained places (NY, LA) that have strong, dynamic economies. So limited supply and barriers to entry are factors affecting vacancy rates and rental rates.

In the superstar cities, I suspect that there is an international ownership distinction between high-end condominiums and single family homes (or low rise duplexes and townhomes). At least in Vancouver, the global jet setters seem to prefer the condo route, likely because they are low maintenance. You can close and lock the door and leave for three months and all is perfectly safe.

A vacant single family home or duplex requires a caretaker. Certainly, some jet setters (or pro-sports stars) own single-family homes they only occupy a few months of the year, but I think this is the exception rather than the rule.

So, high condo prices may be driven up by global $, but high single family housing prices are based more on local factors (although there is certainly some interplay between the two).

]]> By: MPS http://www.creativeclass.com/_v3/creative_class/2007/07/31/risky-real-estate/comment-page-1/#comment-1721 MPS Tue, 31 Jul 2007 19:22:54 +0000 http://zstation/creativeclass/v3/creative_class/2007/07/31/risky-real-estate/#comment-1721 I wonder how the weak dollar may prop up some of these otherwise overpriced housing markets. Those foreigners holding, for example, euros or even Canadian dollars can find some relative bargains even in Miami, LA, NY, etc. Will that spill over in to less-globalized coastal areas, like South Carolina or Oregon? The South Carolina coast, for example, has already been largely overtaken by out-of-staters taking advantage of relatively cheap coastal properties (how many Michigan and Ohio plates do you see in Myrtle Beach & Hilton Head?). Native middle-class South Carolinians are more likely to go to more out-of-the-way, undiscovered coastal towns (I won't mention any for fear of opening the real estate & development floodgates). I wonder how the weak dollar may prop up some of these otherwise overpriced housing markets. Those foreigners holding, for example, euros or even Canadian dollars can find some relative bargains even in Miami, LA, NY, etc. Will that spill over in to less-globalized coastal areas, like South Carolina or Oregon? The South Carolina coast, for example, has already been largely overtaken by out-of-staters taking advantage of relatively cheap coastal properties (how many Michigan and Ohio plates do you see in Myrtle Beach & Hilton Head?). Native middle-class South Carolinians are more likely to go to more out-of-the-way, undiscovered coastal towns (I won’t mention any for fear of opening the real estate & development floodgates).

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