Labels

9-line access access management access point accessibility ADA air quality alignment amenity antiplanner atlanta BART benchmark BID bike Blogs boston branded bus corridors brookings brt bus Bus Rapid Transit BYU capacity car pool car pool lane cars central link Centrality certification commuter rail condo congestion congestion pricing connections consistency coverage crossings CRT cycling DART dedicated dedicated right of way density denver depreciation developers development economics efficiency Envision Utah equity eugene exclusive extension FAQ favela Federal Funding Flex Bus florida free fare zone freeways frequent network frontrunner frontunner Gallivan garden cities gas prices geotagging goat Google grade-separation Granary District growth headway heavy rail hedonic High Speed Rail history housing housing affordability housing bubble housing prices HOV income infill innovative intersections intensity ITS junk science LA land use Land Value Economics LEED legacy city light rail linear park location LRT lyft M/ART malls mapping maps metrics metro MetroRail missoula mixed mixed traffic mixed-traffic mobile mode choice Mode Share multi-family MXD neighborhood networks news NIMBY office online op-ed open letter Operations parking parking meters peak travel pedestrian environment phasing Photomorphing planning Portland property property values Provo proximity quality_transit rail railvolution rant rapid rapid transit RDA real estate redevelopment reliability research retail Ridership ridesharing right of way roadway network ROW salt lake city san diego schedule schedule span seattle separated service branding shuttle silver line single family SLC SLC transit master plan slums smartphone snow sprawl standing stop spacing streetcar streetscape streetscaping subdivision Sugarhouse Sugarhouse Streetcar Tacoma taxi technology tenure termini time-separation TOD townhouse traffic signal tram transit transit agency transit networks transit oriented development Transit Planning transponder transportation travel time TRAX trip planning trolley tunnel uber university of utah urban design urban land UTA UTA 2 Go Trip Planner utah Utah County Utah Transit Authority value vmt walking distance web welfare transit Westside Connector WFRC wheelchairs zoning

Friday, June 11, 2010

The number of customersapplying for a mortgage to purchase a property fell to the lowest level in 13 years last week, a sign the housing market is struggling without government incentives.

This quote shows the fundamental danger of using federal dollars to prop up the housing market--when you remove the prop, the housing market needs to come down. It was a bubble and it needs to deflate. Houses cost too much--they cost more than people can afford to pay. The median national house price should be about 2.5 times the median national income. It is nowhere close. People are still buying houses that are out of their price range, and paying too large a percent of their monthly income. Faced with a financial shock (illness, loss of job, car crash), default is almost inevitable.

The housing market is struggling because it needs to struggle, to return to some sort of economic discipline, instead of the speculative carnival Wall-Street financiers created. Pumping more public money into the housing market only keeps housing prices high, rewarding speculators.

There is nothing wrong with renting. No matter what your real estate agent says, buying a house doesn't automatically build equity.