I don’t know why you hope I’m right. The lion’s share of our economic growth over the last decade was dependent on phony equity from the real estate bubble. By the time it collapses its going to decimate communities, particularly ones that are over-dependent on that sector.
Its not going to matter if RE drops 80% if unemployment is at 20%, interest rates skyrocket and credit slows to a trickle. There won’t be enough buyers or renters around for all that cheap housing. Look at whats happening in Detroit and Cleveland, houses are just going to sit empty and abandoned in all but the most primo of locales.
Something I think *might* happen if our economy is resilient enough to handle the RE bust is that the huge surplus of empty commercial and residential property lures big businesses to setup shop in the IE.
Another possibility is the weak dollar combined with a huge glut of downtown condos makes SD a popular destination for rich foreigners to buy vacation properties.
