There is a lot of speculation that residential real estate markets are in a bubble. Certainly there is cause for concern: The rates of gains in prices over the past year are unsustainable, and a bit disturbing. We are seeing multiple offers on a huge percentage of homes that are sold, and buyers are racing to make offers.

Sustained strong real estate markets are usually driven by household formation, or an increase in the percentage of the population that owns a home. Neither is happening.  read more »

Viewed from a 50-year perspective, the rise of East Asia has been the most significant economic achievement of the past half century. But in many ways, this upward trajectory is slowing, and could even reverse. Simply put, affluence has led many Asians to question its cost, in terms of family and personal life, and is sparking a largely high-end hegira to slower-growing but, perhaps, more pleasant, locales.  read more »

For centuries, explorers searched for the legendary golden city of El Dorado, seeking instant wealth in the jungles of South America. But today’s treasure trove may be found much closer to home; cities like El Dorado, Arkansas, for example, that have successfully linked their economic development strategy to improving the educational attainment of their residents.  read more »

Perhaps no urban legend has played as long and loudly as the notion that “empty nesters” are abandoning their dull lives in the suburbs for the excitement of inner city living. This meme has been most recently celebrated in the Washington Post and the Wall Street Journal.

Both stories, citing research by the real estate brokerage Redfin, maintained that over the last decade a net 1 million boomers (born born between 1945 and 1964) have moved into the city core from the surrounding area. “Aging boomers,” the Post gushed, now “opt for the city life.” It’s enough to warm the cockles of a downtown real-estate speculator’s heart, and perhaps nudge some subsidies from city officials anxious to secure their downtown dreams.  read more »

The urbanist internet has been a ga ga over an article by artist and musician David Byrne (photo credit: Wikipedia) called “If the 1% stifles New York’s creative talent, I’m out of here.” Now David Byrne himself is at least a cultural 1%er, and at with a reported net worth of $45 million, isn’t exactly hurting for cash. In fairness to him, he forthrightly admits he’s rich. He also is bullish on the positive changes in New York in areas like public safety, transportation, and parks, and does not fall prey to romanticizing the bad old days of the 70s and 80s. However, in his assigning blame for New York’s affordability, he points the finger squarely at Wall Street, neglecting the role he himself played in bringing about the changes he decries, changes in which he was more than a passive participant.  read more »

Middle-skill jobs are in the same camp as green jobs, STEM jobs, and other groups of occupations that garner lots of attention: They can be defined many ways, by many rubrics. Regardless of the definition, however, it’s clear that middle-skill, or middle-wage, jobs have been in decline for years.  read more »

Less than 35 years ago, China established its first special economic zone in Shenzhen, a prefecture (Note) bordering Hong Kong. This model is about to be expanded with the establishment of a new financially oriented free-trade zone in Shanghai, which could prove a major breakthrough in that city’s quest to become East Asia’s financial capital.  read more »

Southern California has always been an invented place. Without a major river, a natural port or even remotely adequate water, the region has always thrived on reinventing itself – from cow town to agricultural hub to oil city, Tinsel Town and the “Arsenal of Democracy.”  read more »

With Twitter’s high-profile IPO, the media and much of the pundit class are revisiting one of their favorite themes: the superiority of the brash, young urban tech elite, who don’t need to produce much in the way of profits to be showered with investor cash.  Libertarians will celebrate the triumph of fast-paced greed and dismiss concerns over equity; progressives may dislike the easy money but will be comforted when much of it ends up supporting their candidates and causes.  read more »

The headline read, “We Have Become a Nation of Hamburger Flippers: Dan Alpert Breaks Down the Jobs Report.” Seems that Alpert, the managing partner of New York investment bank Westwood Capital, LLC, was unhappy that most of the jobs created in July were for low-wage workers.  read more »