Forbes.com lists the best places for real estate to rebound (h/t: Dean Alexander): Seattle, San Francisco, D.C., New York, and L.A. come out on top. Hard-hit Detroit is last.
Prosperity Institute researchers Patrick Adler and Ronnie Sanders compare this to the creativity index. The Forbes’ rebounders have a creativity index score (.852) some 30 percent more than the hardest-hit group (.619).
November 10th, 2008 at 4:11 am
Sorry, this looks like a report with a flawed premise. It’s based on a survey from the Urban Land Institute which asked real estate professionals to rate which cities were best for commercial real estate investment.
Well and good, but Forbes then makes a leap… “Their answers also apply to the residential market, since the single-family-home sector typically follows the economy. As wages go up and there are more jobs, more people can buy homes, pushing prices up.”
There are plenty of examples where the commercial and residential real estates markets do not operate in sync, and if it’s all a matter of the economy, why not just look at the employment trends?
I can tell you which cities are best for long-term residential real estate values, and they are the places with the best quality of life. Understandably, these are the places that are associated with a growing creative class. People will continue to move to and invest in cities that are interesting, vibrant, challenging and welcoming.
Best, Bert