Two thoughts on the existence of a housing bubble. Last night, in an unrelated conversation, a friend pointed out that, among the people he knows, if they aren’t doctors or lawyers, they work in one area or another of the real estate business. Obviously, it’s a big, diverse industry, but I’d bet the stats bare this observation out. (I mean, there’s three of us just here on this page.)
On a completely separate front, the NY Times this morning notes an apartment bubble in all areas of the U.S. other than the northeast and California, where building regulations and a lack of land have prevented a buildup of supply.
In Atlanta, the word is the glut has been in homes selling for more than $1 million, which havent’ been moving for over a year. Houses under $500,000 have continued to sell. If this article is right, though, you’d think that young people, especially, may start forgoing the first home purchase in favor of a few more years in the post-college apartment.
Even Better Thoughts