? Fallout from the subprime bust |
| Canary in the coal mine? ?
March 21, 2007
The ultimate irony
Where in the US can you buy a home for less than the price of a new car? You're probably thinking somewhere in Montana or South Dakota, or perhaps the Delta region of Mississippi, which has historically been one of the poorest regions in the nation. You might be right (though it should be noted, Mississippi is doing a little better these days, with the recent announcement of yet another auto plant coming to the state.)
Think Detroit, which was once the hub of the nation's manufacturing sector, the place where auto workers could earn enough to not only afford a home, but also a small lake house and enough to send their kids to college. As this article from Reuters points out, it's fairly easy to find a home in Detroit that sells for less than the $29,000 that is now the average cost of a car. According to Reuters, some homes coming up for auction are going for as little as a quarter of the original listed price. And we're not only talking about matchbox-sized houses in struggling neighborhoods. One real estate expert notes that a three-bedroom home in Bloomfield Hills went for $130,000 -- nearly $400,000 less than it was listed for.
TrackBack URL for this entry: