Overpriced Consequences
One would think that $1 Million can buy a humungous intelligent home equipped with beautiful views of the city below, but depending on the area, this isn’t quite the case. Ellen Paris showcased this in her article “What $1 Million Buys You In Real Estate Today”, stating that in San Francisco, for example, $1 million can only get someone a property that is about 1,600 square feet. On the other hand, an area that isn’t in the well-known cities of the east or west coast, much like Nashville, will get someone “a brand new, hip modern place with city views and over 3,000 square feet.” (Paris, 2018)
This all makes it nearly impossible for people to move and ultimately live in these cities that are treating $1 million the same as $100. People will be forced to branch out and create smaller, affordable cities while those way overpriced homes will continue to stay vacant. Additionally, this can impact the businesses in that area. The purchase or renting of a building or shop will increase as well, so businesses won’t be able to afford opening up in that city. Inadvertently, all of this causes a crash in the economic and living situation within that city, with only tourism bringing in what is necessary to keep it running.
Altogether, there’s quite a difference between cities in relation to home value. Because of this, those cities that aren’t following this new trend of overpriced homes will reap the benefits of those that are. People looking for a cheaper, livable lifestyle will move to the new area while the expensive cities will continue to showcase empty, often foreclosure, homes. Businesses will also prefer to open and operate in other areas, drawing more people to those cities as well.
Ellen Paris’ Story: https://www.forbes.com/sites/ellenparis/2018/08/30/what-1-million-buys-today/#41da88dc6b54