How come there is no regulation in that and what is controlling those prices?? How is it that so many people can still afford those expensive housing?
2006-07-03 11:12:36 · 20 answers · asked by Raines 1 in Society & Culture ➔ Other - Society & Culture
It's supply and demand. When there is more demand for housing than there are houses available, prices go up. When there are more houses for sale than there are buyers, prices go down. The government in a free country has no business interfering in the free market.
2006-07-03 11:22:04 · answer #1 · answered by Sprinter 5 · 0⤊ 0⤋
It's all a question of supply and demand. Since living in a place like Orlando, Los Angeles, Houston etc... pays better, has better school systems, more desirable colleges, better health care systems, more corporations that offer extravagant benefits, well, these are the places that people want and need to live in. Sellers of real estate know this and will demand higher prices for property. On the contrary, you may have a town in Georgia with one stop light, a high school with a high drop out rate, very little jobs to be offered and no hospitals or specialty doctors. Who the hell would want to live there? There's no opportunity.Weather is also a big factor. Since Central Florida got slammed with their hurricanes in 2004, the prices of homes are now declining. People are leaving and moving to the Carolinas and Tn. No hurricanes. Get the picture?
2006-07-03 11:57:08 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I would assume the cost of housing is based on the the median pay scale for an area. I live in rural south Georgia and here the housing is moderate. But, the pay is also moderate. Housing costs not only vary state to state, they also differ within the state itself. Housing here on my salary is affordable, whereas if I lived in Atlanta, making the same salary, I couldn't afford to rent even a small apartment. Each city has a "cost of living" and it's all factored in, housing, salaries, food, entertainment... you get the picture. As to how people afford it, we often ask ourselves the same question. My question is, how do people afford new homes, 3-4 new cars, plus all other living expenses? I make good money for this area but I just don't see how they do it.
2006-07-03 11:18:22 · answer #3 · answered by misspolly1969 3 · 0⤊ 0⤋
Supply and demand.
In New York City some thirty years ago houses were reasonably priced for most working people.
Today the new generations have to move elsewhere to find affordable houses.
This creates separation of ties and family values diminish where one loses sight of their roots.
In sum: the high demand for good housing in congested regions has caused a sociological shift that's not very healthy.
Ditto...Supply and demand and capitalism at work.
Should mortgage rates continue upward, expect a drop in prices.
Never toward "normalcy".
2006-07-16 10:51:56 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Supply and demand. Some towns in Wyoming are trying to draw in younger families so they're trying to provide good bargains. So many people are being drawn to Las Vegas, there's a long waiting list. No need to cut prices there.
A lot of people are drawn into shady mortgage deals and eventually find out that they can no longer afford their houses. There has been a large increase in house foreclosures.
2006-07-03 11:21:47 · answer #5 · answered by klunk 3 · 0⤊ 0⤋
its supply and demand.... if there is a low vacancy rate, then only the rich can have a roof over their heads. i dont think there is really anything ' controlling ' the prices. I could list a shack for a million dollars anytime i wanted, but no one would pay that. as for how many people can afford that... well, most families have 2 incomes now, plus many parents help, and a lot of people have nothing else but the roof over their heads and a heap of debt
2006-07-03 11:18:18 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Everything is based on the economics in any one area. For instance, I live in a small SW GA city of about 100,000 where wages are not that great. A nice 3 br 2 ba house here costs $85,000 to $110,000. My daughter makes 2.5 more than I make in Atlanta and a house like mine up there costs about $250,000 to $300,000. In my small city there is not as much to spend money on. In Atlanta there is something going on daily -- probably hourly. However, I have found food to be cheaper in Atlanta, if you know where to shop, and they have lots of discount stores. Many of those who have bought expensive houses in big cities have made that a major priority and don't spend their money on much except costs related to their house (payments, taxes, insurance, maintenance). My daughter has 2 friends who bought expensive houses in exclusive neighborhoods, but they don't seem to have any money to do fun things these days.
2006-07-17 08:05:18 · answer #7 · answered by Loyless H 3 · 0⤊ 0⤋
Its a cost of living thing . some states pay more per hour ,so landlords can charge higher rents . Homes sell for more if a states economy is good thus food etc are also higher. You make more money you can afford more expensive things ..
2006-07-03 11:18:41 · answer #8 · answered by Yakuza 7 · 0⤊ 0⤋
The power of supply and demand always works in all things. Some places have a higher cost of living, while others have a good lilving standard.
2006-07-03 11:15:26 · answer #9 · answered by jmmevolve 6 · 0⤊ 0⤋
Supply - Demand - purchasing power - Greed - Speculation
2006-07-12 03:16:47 · answer #10 · answered by Anonymous · 0⤊ 0⤋