Many places around the world have always had expensive real estate. The difference is these are no longer isolated enclaves for the super rich, but have spread to middle class areas. You only need to check back over the last 10-20 years to see how much home prices have accelerated. It is frightening! Theories on number of sunshine hours, golf courses, haute cuisine establishments don’t really cut it, as I don’t think you can say SD is twice as good as Charlotte, and therefore should command twice the price. Cheap credit, broke social security, and Wall Street seem a more likely candidate. The importance of RE to the local economy might be another. The truth is we never got over our bubble addiction. Government medication prevented the pain of going ‘cold turkey’, and is it any wonder the tax payer feels aggrieved. It’s a mystery why there haven’t been riots on the streets, frankly.
