In Detroit, the average price of home sales is less than what you’d pay for a good used car. UCLA economics professor Matthew Kahn points out that you can buy 100 Detroit homes for the price of one house in Westwood in L.A. “Is this a good deal?” Kahn wonders. Maybe if you turn them into an artists’ utopia for you and your friends — but not if they’ve already been reclaimed. (HT: Marginal Revolution)
Thursday, September 10, 2009
When Is A House Worth Less Than A Car?
What happens when there is a large supply and very low demand: