Indian Megacities

As the capital of Uttar Pradesh, India’s most-populous state, Lucknow has attracted hundreds of thousands of migrants from rural areas, swelling the city’s population. Yet the city hasn’t completed any major new sewage infrastructure since before the country won independence in 1947. As much as 70% of residents don’t have sewage service, leaving much of the waste to flow directly into the main river, the Gomti, which has become a stinking cesspool.

Wall Street Journal has an article on India’s megacities with the tagline that they are choking India. But is that really what is happening in India? There is an inherent understanding that there is a conflicting dichotomy between urban and rural regions. But even if it does exist, quotes in the WSJ article itself contradict its byline:

Shami Shafi, a 35-year-old laborer in Lucknow, has seen his daily income drop by half in recent months to 50 rupees, or about $1, for carrying bags of potatoes and other goods in a local market. But “I’m not going back to my village,” he says. If work gets harder to find, “I’ll just go to another city.”

Atanu Dey, noted economist and widely-respected proponent of urban India points at the real culprits of urban problems.

Effect of your Neighboring Homes

In Camden, N.J., perhaps the poorest American city I regularly visit, I photograph what I call paired houses: two dwellings, side by side, one occupied, the other empty. Those living in the occupied home often have their lives made more difficult by what happens on the other side of a shared wall.

The effect of your neighbors homes on your property is a given in real estate. We tend to control what our neighbors do just because what they do affects us as well even though it doesn’t happen on your property. But what can we do when there are no neighbors to speak of (or to)? Camilo Jose Vergara photographs dwellings where one is occupied and other is not. He talks to the owners of the occupied homes about the dangers of vacancy next door.

Can we relate this to the justification of bailing out owners of foreclosed homes because the state of their foreclosed homes affects us all?

Low-Income (Potential) Homeowners still neglected

Research by the Center on Budget and Policy Priorities shows that since 1995 federal funding for low-income housing assistance has dropped by over 20 percent, both as a share of GDP and non-military discretionary spending. Meanwhile, the number of low-income renters spending more than half of their income on housing costs has increased by over 33 percent since 2000.

In the current housing crisis, low-income homeowners continue to face the brunt.

Crisis of Credit

The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.One of the best explanations of the current credit crisis. It shows how ordinary homeowners defaulting aren’t solely to blame and the problems are systemic tracing back to the lowering of the Fed rate and repeal of the Glass-Steagall Act in 1999 that allowed creation of mortgage-backed securities. But I’m no economist and reasons are far more complex that I could even begin to explain here. The sociological impacts on the neighborhoods however are only beginning to show with abandoned homes that are only making the problem worse.

Zillow is hiring

Love dabbling in real estate data? Zillow, the online real estate website is looking for a Data and Analytics Specialist. Although I’m quite well versed in ArcGIS, unfortunately my knowledge of SQL is pretty limited which is one of the important criteria for the position. As Steven Levitt says, if you get the job after reading about it on here, don’t forget to double the value of my home in their database :)

Rent or Buy?

The NY Times Rent or Buy Calculator compares the cost of renting versus buying a home. Enter your monthly rent, projected price of buying a house, mortgage rate, and property tax and the calculator will spit out the number of years after which buying is better than renting.

An extremely useful tool especially in today’s sliding housing market where some homeowners are experiencing negative equity. But as with any online tool, don’t replace it with the experience of a human. Trust but verify.

Most and Least Affordable Housing Markets

The National Association of Home Builders/Wells Fargo Housing Opportunity Index released last week determines the percentage of residents who can afford a median priced home in a given area. Predictably, homes in the Midwest with the rising foreclosures and falling housing prices have the most affordable housing markets and least affordable homes are concentrated on the coast, mostly West. Only 10.5% who earn the median household income of $59,800 can afford a median priced home in Los Angeles – Long Beach/ Glendale where the median home price is $412,000.

Bruce E. Breunig Jr., broker at Century 21 Alliance in Margate, admitted that “we Realtors remain part of the problem. We blame the media for fueling the downturn and try to counterbalance it with our own positive spin.”

Meanwhile realtors are divided over the accuracy of their own numbers even to the extent of admitting to blame for the downturn in the market.