Friday, April 08, 2005

Housing Costs Force Workers Off Island

One island off the coast of Maine is considering unusual methods as home prices climb out of reach. The BoothBay Register, "Coastal communities are increasingly being sold to out-of-staters, driving prices up for Maine residents."

"We have multi-million-dollar summer homes, but no affordable housing," Rep. Hannah Pingree said.

"'If we keep losing year-round workers on the island, we will continue to see a shrinking school population, lose our year-round stores and lose volunteers' for community projects and services, like the volunteer fire department. 'As it is now,people have to travel 30 or 40 miles to come to a modest job,' because they can't afford to live on the island."

Their solution will probably do more harm than good, without really addressing the problem. "A bill that would allow communities to adopt a one percent sales tax on homes going for more than $1 million, with the money being used for affordable housing."

10 Comments:

At 8:15 PM, Anonymous Anonymous said...

Aggrevated excess liquidity:

http://www.forbes.com/forbes/2005/0425/108_print.html

As far as I'm concerned its like drinking too much. The next day you say to yourself: I's so thirsty today I should have drank more last night.

There may be excess liquidity now, but there will be not enough in the near future.

I don't understand how the Fed can see houses increasing by 20% every year and say that inflation is running at 2.5%.

The only reason the US can't measure any inflation is because it is happening in China. Somewhere in China there are factories turning our record number of stoves, fridges, light fixtures, window mechanisms, furnaces, toilets, bathtubs, etc.

The only thing we have to show for all this is a trade deficit. No wonder !

 
At 8:18 PM, Anonymous Anonymous said...

Not enough houses in Seattle:

http://seattletimes.nwsource.com/html/homerealestate/2002233741_homesales07.html

The birthrate in some of these cities must be outrageous !

 
At 8:50 PM, Blogger John Law said...

from noland

(ABS issuance was a relatively slow $5.3 billion (from JPMorgan).  Year-to-date issuance of $155 billion is now slightly below comparable 2004.  At $97 billion, y-t-d home equity ABS issuance is only slightly above the year ago level.)

very interesting, could there be a slowdown in the rate of growth?


 

 
At 9:58 PM, Blogger Ben Jones said...

(I don't understand how the Fed can see houses increasing by 20% every year and say that inflation is running at 2.5%)

True. Thanks for commenting. Ben

 
At 10:27 PM, Blogger John Law said...

it's because when they compute housing for the CPI they use the owners equivalent rent, meaning what they could rent the house out for. CPI is vastly understanding.

 
At 10:37 PM, Anonymous Anonymous said...

Is there really a bubble? Greenspan says No!
Greenspan Speaks out

 
At 10:43 PM, Anonymous Anonymous said...

(Not enough houses in Seattle:)

Not true. New home builders on the east side are doling out large disounts for new homes. New house builders in Redmond have been sitting on finished inventory for three months now in many neighborhoods.

checkout Redmond Ridge, Woodbridge and other communities to check it out!!!

Not surprisingly Seattle Times has two sections completed devoted to real estate advertising every week.

 
At 7:32 AM, Anonymous Anonymous said...

I agree that Seattle has enough houses. I was being facetious.

 
At 7:51 AM, Blogger Preston said...

It seems like they need a steeper tax on vacation homes.

 
At 8:46 AM, Blogger jeff dandel said...

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