The Economic Perspective: “Could Home Prices in Cities Fall?”

Mary:  This is Mary Walden with economist MW, welcoming you to the economic perspective.  Today’s program asks if home prices in cities could fall.  Mike, ever since the Great Recession a decade ago, owners have worried about the prices of their homes.  They worry that home prices could drop again like they did during the Great Recession.  Now a renowned economist is saying home prices could drop again as a result of the coronavirus.  Give us more details.

 

Mike:  Summary Answer

  • Prediction is from Robert Shiller, a Yale Nobel-Prize winning economist who was one of the few to predict the Great Recession
  • Says home prices in big cities could drop, especially if virus lingers
  • Reason is because virus spreads most easily in density
  • Shiller says families, especially, are already moving to lower density suburbs to protect themselves – could mean lower prices in homes they sell
  • Especially facilitated if can remote work
  • I’m MW

 

Mary:  And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.