Crosspost From NYT
I keep on writing/contributing tons of stuff all over the net...but not here on my own Blog. What's with that? LOL
Here's one of the hundreds I must have posted since I started this Blog...it was prompted by a story on how there are still a few "bargains" to be found in the NYC housing market....
http://www.nytimes.com/2006/06/04/realestate/04cov.html?_r=1&oref=slogin
http://walkthrough.nytimes.com/?p=574
The irony of a story like this is that it serves to kill the "bargains" and to further fuel the market.
There are always little nooks and crannys where persistent and/or lucky people found below market housing. By shining the laser spotlight of the NYT on this you have just flooded the market with good folks who will try to scavenge for the same deals...and the good folks who have the apartments to rent will simply raise the rents to conform with "demand". Every one will act in what they perceive to be in their own short term self interest.
The real solution is to have scads and scads of low income housing of GOOD QUALITY!!!
There is no good reason for working people to be spending half, or more, of their earnings just to have a roof over their heads....20% would be decent.
The lack of affordable housing for working class people drives up rates at the high end. And as the "rich" get "richer" the competition for nice apartments becomes utterly absurd. People are paying MILLIONS of dollars for what used to be mundane middle class apartments! It's funny on one level....pathetic on most levels.
There is a perverse incentive to keep affordable housing in short supply so that the top of the market stays inflated. The last thing property owners want is to have the market flooded with high quality affordable housing. The long term stupidity of this short term selfishness is that it destroys the quality of life for everyone in the long run.
Millions of Americans (and their children) who still remember when a single income of a blue collar worker could support a family and a home and sending kids to college aren't buying the BS about what a "great economy" we have. There is a limit to how low you can drive the living standards of ordinary struggling working class Americans before things get very ugly.
Think about it.