Rome, NY Sucks

But At Least We're Not Utica

Thursday, April 07, 2005

The Housing Bust

I wasn't interested in linking to the Daily Kos article about out of control real estate pricing, but another article did bring me back to the idea of the housing market. CNN has a story online about the way rental prices are relatively stable compared to home prices. This indicates that the rush of home buying is financed by speculative loans that depend on flipping property for more money in the future. If the market were truly there, rents would rise with home values. I find this especially disturbing because it means accelerating property taxes for people who just want to live in a house and not sell it in 2 years for a quick buck. Frankly, I look forward to the housing market collapse. Too bad all the banks will be insulated by FDIC and FHA.


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