This blog contains posts and comments written by students in Dr. Tufte's economics classes at Southern Utah University.
9/28/2005
A million reasons not to move to New York
What does a million dollar house look like? Three car garage, 6,000 square feet, pool in the basement, and an included chef that will cook you lasagna anytime you want it? Well thats what I would want if I paid a million dollars for my house. What about a million dollars for a one bedroom apartment in Manhattan? I can't even imagine forking out that kind of dough for the bare minimum. According to a recent Census Bureau survey shown in this article, over a million houses in the United States are now selling for over a million dollars. These are not all opulent houses that you would expect in the Hamptons or in Laguna Beach. A one bedroom apartment in downtown New York is going for a million dollars. Sure location is everything when it comes to Real Estate, but a million dollars? This is more of a FYI article than anything. I just can't believe that the price of certain locations with respect to real estate is going up as high as it is. In order to live a decent lifestyle in certain locations, you are going to have to have a pretty hefty bank account.
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5 comments:
Destiny - try to make the text of your link more informative please.
-1 on Emily's comment for a spelling error.
-1 on Sara's comment for a spelling error.
To interpret this properly I think we have to recognize that real estate is a bundled good. For a million dollars in Cedar City you get the big house and not much to do. For a million dollars in New York City you get an apartment plus proximity to all the things you can do there.
I had the opportunity to live in London for a while when I was a student. There, no one spends any time in their small cramped place - they all get out and spend their time in public places engaging in many activities that you can't easily find elsewhere.
Dr. Tufte said:
"To interpret this properly I think we have to recognize that real estate is a bundled good. For a million dollars in Cedar City you get the big house and not much to do. For a million dollars in New York City you get an apartment plus proximity to all the things you can do there."
I never thought about it this way before, but it makes sense. This is probably why "location is everything." Being in close proximity to many things would increase home value. This is especially true in New York City.
Dr. Tufte mentioned that "real estate is a bundled good". This is an interesting way to look at it. I guess it all boils down to the preference of the individual. Every real estate market presents its’ own bundle. Either Cedar City’s relaxed family environment with decent schooling and no traffic or New York with its hectic environment and top of the line fashion. Whatever floats your boat.
Dr. Tufte said that real estate is a bundled good. This means that when people are looking to buy a home, they are not just looking at the home. In a sense, they are buying a home, a neighborhood, a school system, a shopping district, a job market, an amount of gas from the home to where they want to go, etc.
-1 on Matthew: I can't really see what you got out of this.
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