A housing unit in a bubble market will cost much more then a similiar housing unit in a non bubble market. High local wages are generally a neccassary ingredent to sustain high home prices ( except in strong vacation markets). Wages in Bakersfield, CA are much lower the San Deigo. In the same vein, home prices are much lower in Bakerfield then San Diego. Additionally, high wages are neccasary in high cost areas to attract talented employees.
Globalizationis a continuing reality. Price equalization, including labor rate equalization, is a component of globalization. Globalization will continue placing downward pressure on US wages. Bubble markets are particulary vulnerable as the wage differentials are even greater. Given the continued march of globalization, the tremendous wage differential between the bubble markets and the non bubble markets / the rest of the globalized world is inherently unsustainable.
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