Shiller sages grim future for real estate
In recent address, econ. prof. predicted housing market could plummet to Great Depression levels
On a night when exit polls for the Pennsylvania presidential primaries showed that many voters already lacked confidence in the economy, Yale economics professor Robert Shiller delivered some less-than-inspiring words about the national housing market.
Speaking in New Haven on Tuesday afternoon, Shiller predicted that the current housing crisis, which has resulted in a nationwide spike in foreclosures and a decline in property values, will likely only become more severe — perhaps worse than during the Great Depression.
The dire prediction is perhaps no surprise coming from...
It is doubtful that the downturn would affect New Haven. New Haven, already one of the wealthiest metro regions in the United States, is getting richer every year as more and more technology, private equity and financial firms move in. Yale is doing $600 million in construction work every year and hiring hundreds of people. The Yale Cancer Center will only make things hotter. Downtown retail, office and apartment vacancy rates are at all-time lows, which is causing prices to rapidly appreciate. Boston, NY, etc., are going to suffer, but New Haven could actually benefit from a recession if construction costs declined.
Of course, this is bad news for students because New Haven may start to lose some of the character that currently makes it the best college town in the Northeast.