patrick.net

drtor says

I would say that it is actually pretty rational to be willing to pay a significant premium on living close to where you work. If you save 30 min each way on your commute that's an hour of your life every day, what is more important that that?

So, if the ratio of PA/WC increased 10 times during 6 years, is it because there are now 10 times as many people as 6 years ago, who have jobs in PA vs. WC, and don't want to commute, or is it because, they all just realized that they didn't want to commute.

dunnross says

drtor says

I would say that it is actually pretty rational to be willing to pay a significant premium on living close to where you work. If you save 30 min each way on your commute that's an hour of your life every day, what is more important that that?

So, if the ratio of PA/WC increased 10 times during 6 years, is it because there are now 10 times as many people as 6 years ago, who have jobs in PA vs. WC, and don't want to commute, or is it because, they all just realized that they didn't want to commute.

It could be enough that incomes went up significantly more in PA than in WC. And it does not have to be 10x more, price points can be sensitive when the supply is inelastic like houses. For another example check out how the Baltic Dry Index of shipping costs goes up and down like crazy when there are modest changes in demand volume.

That said, I don't claim to be an expert on PA real estate, just mentioning a general principle. Did the rents in PA go up with the houses? If yes, that would seem to indicate that it is driven by underlying supply/demand/demographics. Which does not mean it will stay that way forever but it would suggest that it will stay as long as the demographics remain the same. If on the other hand houses are expensive relative rents that would suggest they are more driven by speculation/bubble thinking.

PA real estate is hot right now with all of the natural gas drilling going on.

Oh...crap...wrong PA...

drtor says

I would say that it is actually pretty rational to be willing to pay a significant premium on living close to where you work. If you save 30 min each way on your commute that's an hour of your life every day, what is more important that that?

It goes both ways. Everyone has their own value system. I'm one of those people who drives 30 minutes each way. On the other hand we pay $1,250 for our part of the rent for a 4 bedroom house with another housemate who is seldom if ever home. So when I go home I have a big back yard, an office, my own garage, and a spare bedroom even. The neighborhood we live in is also walkable. You can walk to town if you wanted. We have nice bike lanes too. As a result of this we've saved up a lot of cash. I know for fact that a 4 bedroom house anywhere near where we work would rent for double, if not more than what we pay now. To me that's not worth it and on top of that, I don't really like the Peninsula anyway.