Wednesday, September 27, 2023

Houston #1 std of living confirmed, #2 F500 HQs, higher speeds = higher incomes, screwy city metrics, and more

 Continuing to work through the summer backlog of smaller items...

"Demographer Wendell Cox’s recent estimates of U.S. housing affordability found unaffordable housing in Dallas, Houston, and other Texas cities that have historically been quite affordable. In a post about housing issues, I noted that Cox’s home price data were based on real estate transactions while the Census Bureau numbers are based on a cross-section of all homes in a region.

Before the pandemic, median real estate transaction prices were only 2 or 3 percent higher than Census Bureau values, indicating that people buying homes represented a good cross-section of America. In 2021, median real estate sale prices were at least 20 percent higher than Census Bureau values. As the recent real estate boom is driven by people who have discovered they can work remotely, which means people of above-average incomes, price-to-income ratios based on real estate transactions overestimate the true value-to-income ratios.

The 2022 data from the Census Bureau confirm this. The data show that the value-to-income ratio was 3.9 for the city of Houston and 3.2 for the Houston urban area. These are a lot lower than the 4.7 in Cox’s paper."
"Houston has the title of second most popular headquarters city for Fortune 500 firms... with 22 of them headquartered in the city... 
What makes Texas, or Houston for that matter, so appealing for corporations? Mostly the low cost of living and lack of taxes on businesses. Even Exxon has tightened its belt in the inflationary age, though, shedding its “God Pod” and consolidating its upper management’s formerly exclusive luxury suite into its preexisting Houston campus."
"faster cities are faster because they have more roads and are lower in density (which they describe as have a “larger land area”); and that those roads produce benefits by allowing faster top speeds more than by reducing congestion...The authors conclude that cities that want to increase speeds (and, by stated implication, worker incomes) should build more roads. While it admits that won’t be possible in Bangladesh, it should be possible in most cities and countries. Even if, as the anti-road people argue, building more roads simply leads to more driving, building roads that are faster leads to higher overall speeds which should produce enormous economic benefits."

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At 8:33 PM, September 27, 2023, Anonymous Anonymous said...

The price distortion in the statistics is larger due to Texas being a nondisclosure State.

At 9:00 PM, October 03, 2023, Anonymous Bill Reeves said...

Well said! There's this statue somewhere that talks about that. I think some French guy made it. 'Course the city it's in now describes itself as a "Luxury City" and is outraged, outraged!! that "filthy" poor immigrants are cluttering its streets. Maybe we can move the statue to somewhere more consonant with its message? I think the SoL in the Ship Channel would be cool.

"This is exactly what so many cities do, playing a game of hot potato with low-income households, but not Houston, which should be proud of attracting opportunity seekers rather than embarrassed."

At 9:36 PM, October 03, 2023, Blogger Tory Gattis said...

Lol ;-D Agree!!


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