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Comment by kokokokoko | Hacker News Reader

I see all the issues out on the west coast. But then why are real estate prices in places like Buffalo, Cleveland or Pittsburgh also rising significantly faster than inflation? Why are places where the population is declining seeing an increase in real estate values?

It seems like everywhere I go everyone blames real estate prices on some variety of local issues without noticing that this isn't even a national issue, but global.

Maybe we need to address these macro issues first?

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Speculation and low interest rates are nationwide issues. Locally, price increases are almost always caused the population growing faster than new homes are built.

But if Cleveland cannot keep real estate prices stable, with a rapidly declinig population, how in the world could anyone realistically expect a place like Portland, Seattle or the Bay Area to?

Local policy does not appear to be able to even fix this with a declining population. So please answer me. What is Cleveland doing wrong that is causing their real estate prices to climb higher than inflation? What can Cleveland do?

My speculation and low interest rate points still apply.

Maybe Cleveland was undervalued before? Maybe the population declines are mostly non-homeowners?

So before naming something specific they are doing wrong, what should a house cost? Cleveland is still so much cheaper than many other cities, they might not be doing anything wrong.

Why are places where the population is declining seeing an increase in real estate values?

Perhaps increased real estate values drive out people?

maybe the real estate companies & money lenders want housing priced so high that you will always need to take out a loan no matter what. only the wealthy have the money to pay for a home with 'cash' or at least a good chunk for a low/short term mortgage.

as an american, i can see that 'we' have lost our compassion for those truly in need.

peace.

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