Wednesday, August 27, 2008

Real Estate is in Everything

The lesson I learned from the 70's (although i was a mere wisp then) was that OIL IS IN EVERYTHING. As we watched prices skyrocket and the redistribution of wealth take off at a breathless pace, we realized oil was in everything we ate, drank, read or did.

The first decade of the 21st century (whatever we end up calling it) is going to teach us that REAL ESTATE IS IN EVERYTHING.

It's in your pizza, your haircut, your taxes, and your schools. The cost of everything flies to cover the costs of renting (or buying) at every stage of the process. We have found ourselves consigned to shop in huge boxes in inhospitable locations in order to flee this hidden tax. (IKEA sitting out next to the Newark Airport would seem to be the pinnacle of this phenomenon.)

Prices coming down will make us all winners, particularly our kids.

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