{"id":9315,"date":"2009-07-12T15:29:10","date_gmt":"2009-07-12T23:29:10","guid":{"rendered":"http:\/\/lukeford.net\/blog\/?p=9315"},"modified":"2009-07-12T18:16:30","modified_gmt":"2009-07-13T02:16:30","slug":"why-does-real-estate-cost-so-much-in-coastal-california","status":"publish","type":"post","link":"https:\/\/lukeford.net\/blog\/?p=9315","title":{"rendered":"Why Does Real Estate Cost So Much In Coastal California?"},"content":{"rendered":"

I’m reading this new book by economist Thomas Sowell — The Housing Boom and Bust<\/a>. <\/p>\n

From 2000 to 2005, the average home price in the United States increased by one-third. Millions of Americans began using their homes as ATMs, getting credit lines from numerous banks. Then in 2007, it all crashed.<\/p>\n

* One of the consequences of reselling mortgages — almost all mortgages banks make are sold to such institutions as Fannie Mae and Freddie Mac — is that banks have little incentive to be careful about the financial qualifications of people it loans money to.<\/p>\n

* Until 1970, home prices in California were comparable to home prices around the country. What happened?<\/p>\n

In the San Francisco Bay Area for example, in 2005 the median-priced home cost more than three times the national average.<\/p>\n

MORE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

I’m reading this new book by economist Thomas Sowell — The Housing Boom and Bust. From 2000 to 2005, the average home price in the United States increased by one-third. Millions of Americans began using their homes as ATMs, getting … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[162],"tags":[18223,18191,3640,3648,18224,32745],"class_list":["post-9315","post","type-post","status-publish","format-standard","hentry","category-economics","tag-boom-and-bust","tag-economist-thomas-sowell","tag-fannie-mae","tag-fannie-mae-and-freddie-mac","tag-financial-qualifications","tag-thomas-sowell"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t