I suspect NYC is one of those places where there will always be a good market, because people always want to move out of the dump they are in to something better, and folks in a worse dump want the vacated dump.
Still that's about 2 to 4 times the price of NEW 3 bedroom homes with garage and a lawn in most Red States.
However, I also think the article is written with a high-density high-expense area in mind (left and right coasts, on the water, hoity-toity areas, etc.)
I'm not sure of the amount of housing speculation going on in Bug Tussle, Mississippi or Boise Idaho, or the great plains - Including Texas.
And if a bunch of speculators, who server only to drive the price up, get squeezed till they pop, that's OK with me. Perhaps housing will be affordable again when we flush out these blood suckers who add nothing but price.
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Historically that's not so. NYC RE is fueled by Wall Street bonuses at the high end. If they go away (as happens from time to time) so does the value at the high end, a change that will drive all prices downward.
Also, one day of fifty dead on the subways from a London type attack will drive businesses away.