I hate the term real estate. It's cold and business-y, everything that tends to make me hide under the bed. What I write about is space: homes, cafes, places where you can do work, pet the cat, and Google your next-door-neighbor from 10 years ago. I write about places. And I like to do it from a personal perspective.

Monday, September 19, 2005

One bubble feeds the next?

Call it bubble, call it souffle, call it balloon, call it what you will.

This graph amused me most: "Excessive home prices divert human capital as well. The National Association of Realtors had 1.1 million members at the end of 2004, up from 766,560 in 2000. It's hard to believe that such an increase would have occurred if there had been no housing bubble."

Could be correct, but the focus may be slightly off. Fact is, as the tech explosion reached full fizzle, ex-employees leaked out into new professions. Real estate, an industry that's often (incorrectly) seen as a sure-fire moneymaker, inherited lots of these former dot-bombers as they tried to recover and recoup.

May have had less to do with an oddball housing market than with the death and dearth of Pets.com.

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