Do you think the "old rules" on race and real estate still apply?

[nbres]

Originally Posted by llama8

I think that initially, home prices may be affected in "changing" areas in that they do decrease a little, but I do believe that ultimately, when "white-flight" is no longer possible, these prices will steady out. LI is a desirable place to live. It is a mostly safe suburb that is so close to the city. I again think the prices of homes will utlimately be based on the economic level of the area.

In the next 5-10 years, however, I do think that home prices will be affected in town that are seeing in increase in minorities. I'm only basing this on the historical ideas of LI

I think the evidence is already in. I looked at home prices in areas that have changed, and you know what? There really is not much of a diffeence. Race is not such a big factor any longer, but supply and demand is and always was.

Valley Stream, West Hempstead, Elmont , Hicksville, etc...have homes in all price ranges, but there are many many homes that are up for sale in the over $450,000 range. These areas are all very diverse and yet home values have stayed at or even above the median for LI. Why?

I think because supply and demand ultimately dictates price. The supply of homes on LI is relatively limited and the demand is quite large. The demand is increasing from "minority" home buyers, especially the upwardly mobile looking to move out to the suburbs from NYC.

If demand was limited to just Whites then prices would plunge on LI because there aren't enough White home buyers for every home up for sale. So it comes down to a simple fact of economics supply and demand.

So what will ultimately influence home prices no matter what race of people predominates in any area?

School District Quality
Safety of an area
closeness to the city and commuting time
neighborhood quality and beauty
housing stock
public amenities nearby: parks, pools,beaches, etc...
shopping

Then the race issue becomes one of comfort.

Do you feel comfortable or not in a particular area and not an economic issue.

[llama8]

Originally Posted by nbres

Valley Stream, West Hempstead, Elmont , Hicksville, etc...have homes in all price ranges, but there are many many homes that are up for sale in the over $450,000 range. These areas are all very diverse and yet home values have stayed at or even above the median for LI. Why?.

I agree with you that economic factor will be the new determinant on LI. However, it's so hard to say that prices stayed the same or dropped in areas like VS, Elmont, Hicksville, etc, because of the housing market the way it is. Unfortunately you can't compare prices to 3 years ago because the bubble burst. I don't know the answer, but you said they have homes over $450, but could there be even more homes that would have been listed higher if the area did not get a reputation as a changing area? Who knows? Unfortunately, I do think that race still plays a factor, but i hope that in 10 years, it will not.

[azzurrony]

Again, I think it depends on what ethnicities are moving in. I have no statistical data to prove it, but I would think there is less of an effect when Indian or Asian families move in, than when black or hispanic do.

As wrong as it may be, there is definitely a perception in the NY metro suburbs that Indian/Asian means "keep to yourself" and "do well in school"...when black and hispanic means "trouble".

So, I think any analysis at this point has to factor in which ethnicities you are talking about.

[llama8]

Originally Posted by azzurrony

Again, I think it depends on what ethnicities are moving in. I have no statistical data to prove it, but I would think there is less of an effect when Indian or Asian families move in, than when black or hispanic do.

As wrong as it may be, there is definitely a perception in the NY metro suburbs that Indian/Asian means "keep to yourself" and "do well in school"...when black and hispanic means "trouble".

So, I think any analysis at this point has to factor in which ethnicities you are talking about.

that is a very good point