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Gas Prices Hurting Housing Market

Posted by: Nate Berg
Thanks to: Dylan Rivera
5 May 2008 - 7:00am

The bursting of the housing bubble may be tied to rising gas prices, according to one economist.

"Can steadily increasing gas prices also be blamed for bursting the housing bubble?"

"Yes, says Portland economist Joe Cortright of Impresa Inc. 'The gas price spike popped the housing bubble,' he writes in a new report called 'Driven to the Brink.'"

"The report, funded by CEOs for Cities, a pro-urban Chicago-based nonprofit, advances an argument gaining steam in national urban planning circles: Rising gas prices have made it less attractive to live in suburban neighborhoods that require driving to work, shop and fun."

"In metro areas where home prices are falling, they're falling more steeply in suburbs than in central areas. In metro areas with strong inner city neighborhoods -- like Portland -- prices of centrally located homes continue to rise while the region's prices fall."

Full Story: Spike in gas prices help burst housing bubble, a Portland economist suggests
Source: The Oregonian, April 30, 2008
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It is hard to think of a starker contrast than that between Moses modernism and Jacobs localism. Yet the standoff between Jacobs and Moses only ever sparred two separate wings of the middle class concerning how to build and rebuild the city for people of greater rather than lesser class privilege.
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