Are my housing prices/taxes more influenced by the $40M beach house a few miles away from my home or those in the lower-class well beyond my county line?
Assuming a few basics:
- there are differing economic classes
- each lower one (ideally) graduates to the next higher one
- we are, rather I am, somewhere at the upper-end of well-off
- Area: SoCal, near the beach
Full disclosure, this question is to satisfy a disagreement; in order not to taint the question, my side of the dispute will not be identified.
The 2 differing assertions are:
- my home prices are more affected by a fewer number of wealthy homeowners near my neighborhood.
- my home prices are more affected by a vastly greater number of poor/blue collar renters/homeowners nowhere near my home.
The supporting argument for assertion #2 is that those people at the lowest end of the spectrum are renting/buying in such great quantities that the supply is exhausted. Subsequently, all home prices, even those hundreds of miles away in higher-classes, are affected through a "ripple effect".
Extra kudos for those with more understandable answers. The final assumption, I'm not an economist.