This article from REALTORMag reports that housing prices in the exurbs are increasing.
SUMMARY: The exurbs are starting to make a comeback, signaling that the housing market's recovery is slowly spreading beyond major cities and their suburbs.
CLASSROOM APPLICATION: Students can evaluate two points in particular about the housing recovery spreading to the exurbs. First, higher gasoline prices raise cost relative to living in cities and suburbs of living in the exurbs. Therefore, higher gasoline prices cause a decrease in the relative price of exurban housing. Second, those who live in the exurbs were more likely to default on mortgages than those who live closer to cities.
QUESTIONS:
1. (Introductory) What is the effect of increases in gasoline prices on the price of real estate in the exurbs to the price of real estate in cities and suburbs?
2. (Advanced) Research question. Why are exurban homeowners more likely than suburban homeowners to default on mortgages?
3. (Advanced) Research question. Why has the housing recovery spread from the cities and suburbs to the exurbs as opposed to spreading in the other direction?
1. (Introductory) What is the effect of increases in gasoline prices on the price of real estate in the exurbs to the price of real estate in cities and suburbs?
2. (Advanced) Research question. Why are exurban homeowners more likely than suburban homeowners to default on mortgages?
3. (Advanced) Research question. Why has the housing recovery spread from the cities and suburbs to the exurbs as opposed to spreading in the other direction?
Reviewed By: James Dearden, Lehigh University
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