Local realtors and developers have made much out of
the high cost of housing in Chico, demanding, and
getting, a green light on any housing development
whatsoever in the name of "providing low cost housing"
(of course, no one ever tracks the actual prices of
the developments).
But it's clear to me that we are in the San Francisco
market. Bay Area residents found that their homes were
doubling, tripling, quadrupling in value, and they
could sell them, buy a nice home in Chico next to the
park for a tenth as much, and live forever on the
balance. Lots of forty-ish retirees in Chico. This
obviously drives up the price of housing in Chico as
sellers market to the incoming retirees.
I imagine this process will even speed up with the
dot-com downturn, as people leave the industry
entirely. Can't go on forever, though.
tim
--- Michael Perelman <[EMAIL PROTECTED]>
wrote:
> The collapse of the dot.coms has cut real estate
> prices in San
> Francisco, but the previous momentum is still
> pushing prices up
> in Sacramento -- about 90 miles away. Chico prices
> -- about 160
> miles from San Francisco -- seem to have leveled
> out, the
> realators in the sauna tell me. Is there much
> information about
> how recessions propagate across regions within a
> single economy?
>
> I read about the synchronization of world economic
> cycles, yet
> the lags seem relatively long, even within the N.
> Cal. economy.
>
> --
>
> Michael Perelman
> Economics Department
> California State University
> Chico, CA 95929
>
> Tel. 530-898-5321
> E-Mail [EMAIL PROTECTED]
>
=====
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