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
public amenities nearby: parks, pools,beaches, etc...
Then the race issue becomes one of comfort.
Do you feel comfortable or not in a particular area and not an economic issue.