Re:How the Fed Funds Rate Impacts the Wealthfront Cash Account
by mrep on Friday August 02, 2019 @10:51PM
(#20598342)
> Where many rich people compete with many other rich people to live, evidenced by higher than average home prices and higher than average increases in home prices.
That's just a proxy for good wages but you can find good wages in tons of other cities. I earn a 10% lower salary in chicago then I did in the bay area or seattle but I make up for that many times over by being able to afford a 5000 square foot house in chicago in one of the best public school districts compared to a 1000 square foot house in the bay area in a mediocre school district.
The difference: Chicago and most other cities geography allow them to sprawl and there is still plenty of undeveloped land keeping land prices low whereas the bay area basically has 2 5 mile wide strips of land for single family homes and there is none left to develop which is why your housing prices are exploding.
So while you consider tier 1 cities to be ones in which everyone lives in tiny homes spending all of their money on home mortgage interest rates because land is scarce, I consider tier 1 cities to be ones which pay well and also have affordable housing allowing me to invest money I would be spending on mortgage interest rates in your tier 1 cities.
That's just a proxy for good wages but you can find good wages in tons of other cities. I earn a 10% lower salary in chicago then I did in the bay area or seattle but I make up for that many times over by being able to afford a 5000 square foot house in chicago in one of the best public school districts compared to a 1000 square foot house in the bay area in a mediocre school district.
The difference: Chicago and most other cities geography allow them to sprawl and there is still plenty of undeveloped land keeping land prices low whereas the bay area basically has 2 5 mile wide strips of land for single family homes and there is none left to develop which is why your housing prices are exploding.
So while you consider tier 1 cities to be ones in which everyone lives in tiny homes spending all of their money on home mortgage interest rates because land is scarce, I consider tier 1 cities to be ones which pay well and also have affordable housing allowing me to invest money I would be spending on mortgage interest rates in your tier 1 cities.