If so many want to live in the urban core, why don't suburban prices go down? (sales, housing)

[wehotex]

Everyone is commenting that younger ppl want to live in the city, but it's not just young ppl. If the demand is down in the suburbs, why don't those home prices come down?

[berniekosar19]

One word: Schools.

[wehotex]

Originally Posted by berniekosar19

One word: Schools.

Would we get to a pointwhere the hipsters have kids and then want to move to the suburbs for better schools?

[jackmichigan]

Originally Posted by wehotex

If the demand is down in the suburbs, why don't those home prices come down?

Prices are still basically based upon supply and demand...and we still have too many people creating demand.

[berniekosar19]

That's already happening. Not as many peeps raising children in the urban core stay there all the way through high school graduation. In NYC, for example, unless you get lucky and get into a good school like a PS 81 or the like, you're making the move out to the suburbs.

Another factor in suburban pricing is property taxes. Unlike an urban core, where you have a lot of your tax base comprised of businesses to reduce the tax burden on individual property owners, all suburban towns really have are individual owners; as a result, tax assessments are higher than they would be in a city. That alone ensures that owners need to price above the assessment just to be able to sell, somewhat artificially keeping prices high.

[brienzi]

Prices are way up in the suburban Boston area.. Bidding wars are back and houses selling within days of being on the market.

The supply can't keep up with the demand right now.

Also many young people have an idealist way of looking at their life then get married and have kids..that changes everything..

[Moby Hick]

Though neither has actually dropped for any extended period of time, house prices in the city here have risen more than in the metro area overall. The median sales price in the city is now only $10k below the median sales price in the city. In 2005 the difference was over $35,000.

[davebarnes]

Time Magazine Gets it Wrong on the Suburbs | Newgeography.com

"Time Magazine's Sam Frizell imagines that the American Dream has changed... The available population data shows no such trend."

[rational1]

> why don't those home prices come down?

Some places, in less desirable suburbs, they have.

[Niceguy17]

One word. Inventory.