Wednesday, August 06, 2008

In Pictures: Real Estate Bubbles and Non-Bubbles

California Real Estate Bubble:
Florida Real Estate Bubble:
No real estate bubble in Texas:
No real estate bubble in South Dakota:
Source: OFHEO, via St. Louis Fed


At 8/06/2008 11:23 AM, Blogger Ironman said...


Is there a similar historic index for rents in the same regions? In terms of identifying if a bubble exists, that would be enormously helpful, and it doesn't look like they're tracked in FRED.

Thanks in advance for following up!

At 8/06/2008 12:51 PM, Blogger Steamboat Lion said...

Great data.

P.S. the comparison would be a lot easier and your point much more powerful though if the scale on the Y axis was the same on each graph. As it currently is, you need to look hard to see that prices have gone up by six times in Florida compared to 2.5 times in Texas.

At 8/06/2008 12:56 PM, Anonymous Anonymous said...

Surprisingly, there is an article on about the positive impacts of the oil boom. It talks about a rancher who struck oil in North Dakota and how he and his 70 closest relatives are set for life.

It also talks about small towns which are exploding in size over night as oil firms move in. Hotels being overbooked, houses not being built fast enough, etc.

I think the main selling point of drilling off-shore is not so much that it can fix our energy problems forever or that it can significantly lower the price of gas, but its simply the fact that oil is $118/barrel and we need that money now above ground and not below. You can make an argument that countries like Saudi Arabia, with huge account surpluses, might want to keep oil underground. But we need this oil above ground to help close our account deficit and via taxes our fiscal deficit. Finally, it will help areas that need the help the most right now: Florida and California.

At 8/06/2008 2:48 PM, Blogger SBVOR said...

Steamboat Lion (my neighbor),

Your wish has, to a degree, been granted (before your comment was read).

Although I did not include Texas in my chart, you will find Colorado compared to California and Florida at my local Blogspot.

Actually, this link grants your original wish.

At 8/06/2008 2:57 PM, Blogger SBVOR said...


I trust you are fully aware of the full extent of our domestic potential.

Click here for the rest of the story.

At 8/07/2008 4:47 PM, Anonymous Anonymous said...

The real estate price graphs would be clearer if the vertical axis was in log rather than arithmetical scale. That way, a doubling would be the same measure all the way up.

At 8/07/2008 9:41 PM, Blogger SBVOR said...

This comment has been removed by the author.

At 8/07/2008 9:44 PM, Blogger SBVOR said...


Wish granted (click here).


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