Quote:
Originally Posted by someone123
The paper is interesting as an illustration of the real-world phenomenon, and a response to people who complain about high end condos driving up prices.
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There is probably some validity to concern about high-priced condos driving up prices
in the immediate area. Real estate is all about comparables (with the definition of "comparable" often reallllllly stretched), so more expensive units in the area raise valuations across the board. With enough high-end units you also start to get the critical mass that draws high-end businesses, which draws more high-end units, which pushes people out.
But yeah, on a regional market scale that paper is super interesting.