For those that are not aware, aside from being a professional writer, I am also a camera operator for various televison shows. One of the main shows that I shoot is Larry King Live. It is a great show and I have a lot of fun doing it. As I sit down to write today’s blog, I am several hours removed from filming this evening’s show. The guest today was the CEO of Chevron, David O’Reilly. He spent the hour talking about the high gas prices that is hitting all Americans in the pocket, rather hard I might add. As I drove home, I thought to myself, I wonder how these high gas prices have affected the housing market? I decided to do some research and actually blog about it. To no surprise, the gas prices have had a sizable effect on the real estate industry.
According to www.builderonline.com gas prices have in fact played a large role in tanking the housing market. The article cites a new study called, “Driven to the Brink.” The study focused on five major metropolitan cities: Los Angeles, Chicago, Tampa, Pittsburgh and Oregon. It found that neighborhoods within three miles of the central business district held their home values better than neighborhoods that were ten miles further out. With these findings, it is no wonder that for many people it is becoming less and attractive to live in suburbs that are a considerable distance from their workplace. Economist Joe Cotright, of Impressa Inc. states, “The gas price spike popped the housing bubble.”It seems like the variables that affect the housing market are endless and know you can add yet another one to the list.