Creative Class

Felix Salmon says there’s no end in sight for the housing bust, pointing to the latest edition of the Case-Shiller Home Price Index. Housing prices are off 36 percent since their 2006 peak.  Housing prices have fallen back to 2002 levels in nominal terms but, as Business Week’s Prashant Gopal notes, they’ve plunged to 2000 levels when adjusted for inflation. Calculated Risk (with great graphics as usual) predicts another 10-20 percent drop,

Regional differences remain pronounced. Phoenix and Las Vegas are down more than 50 percent from their peak values, while Dallas is off only 11 percent. Dallas, Denver, Boston, Charlotte, and New York appear to be holding up best. New York prices remain 73 percent above their 2000 levels, Detroit’s are nearly 30 percent below – in line with their 1995 levels.

Image courtesy of Tata Housing

Tata – the Indian mega-conglomerate that launched the $2,000 car – has created a housing division which is building new apartments ranging from $7,800-$13,400 dollars outside Mumbai (pointer via Planetizen). Business Week’s Prashant Gopal explains:

Tata’s housing division is targeting a segment of the market that was largely overlooked during the housing boom. India’s builders were concentrating on building shiny new high rises and mansions on golf courses … Luxury flats in Mumbai can cost more than ones in Manhattan. But these apartments won’t be luxurious. The Tata apartments will be built on 67 acres in Boisar, an industrial area where many lower-wage commuters already rent. These apartments will be absolutely tiny. The carpeted area of the smallest units will be 218 square feet, too small even for most Manhattanites. The largest units would be about 373 square feet.

Check out the pictures, floor plans, and payment plans here.