Most Affordable Housing Markets 2007
Sep 28th, 2007 by Colin
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BusinessWeek just released its Most Affordable Housing Markets 2007. It breaks down the housing variances in each state. Of course it's always giggly fun to see how grotesquely overpriced houses are in Beverly Hills compared to their exact counterparts an hour away. Being from Marin, it's always fascinating to see how much the people in those areas think their houses are actually different than the places an hour away. But the serious thing we see from the survey is the declining middle class in this country. Quickly one has to notice that the states with the highest tax rates, the bluest states, the states with huge government-run programs to minimize inequality and poverty have the highest variances in housing, and, perhaps subsequently, the highest variances in inequality all around. California, Massachussetts, New York, Connecticut–these places each have huge taxes and a tiny middle class, and relatively large percentages of illiteracy, unemployment, the uninsured, the lowest test scores, etc.
I live in Arkansas, which identifies itself by little else than its racist heritage, its strong unions, and its incessant tax rates. The other day I was at a drive-through in a neighboring city, and my $1.00 hamburger rang up to $1.13. I double-checked the receipt, and there was a 12.5% sales tax. You would think in an area where the government controls everything that there would be low rates of income inequality, but any cursory drive through town will show you the exact opposite. Arkansas is nothing but nice houses on lakes and ghettos, and nothing in between.
On the contrary, Idaho and Nevada, both with negligent tax rates, have statistically insignificant disaparity rates also. The richest area in Idaho costs $30 more per house (not $30K) than the poorest area. That basically means there's no significant class division. Reno costs the same as Las Vegas. While I'm sure you can list examples of poor people in Nevada, on a more macro scale, there is less variance there than in most any other state. Which doesn't mean there's no poor, rather that the opportunity is more equal.
All I'm saying is once again supply-and-demand solves everything, and government programs fail.
