<p>A Measurer, it simply isn’t true that “people in MA can afford to pay such high prices.” People are leaving in droves, because they cannot afford the cost of living in this state. And while it is a wonderful state in which to live, many people trade the pleasures of living here for greater affordability elsewhere.</p>
<p>Many of us who have stayed in MA - us oldies but goodies - live in affordable homes - and who have not refinanced for increased $$ - by the standards of maybe 15-20 years ago - before the real estate glut occured - we can still afford the homes we bought before that glut hit - but to purchase the same home in MA now?? NO way would most of us be able to afford ‘‘home sweet home’’. The cost of living difference is very applicable for the ‘now’ vs 20 years ago - especially in the real estate arena.</p>
<p>Is this a false statement: “Employers want an abundant supply of low cost but highly skilled workers.”? Other than some market perversions (such as cost based pricing) give some broad examples where employers do not want an abundant supply of low cost but highly skilled workers.</p>
<p>-AllMusic-:</p>
<p>You have taken issue with my statement that: Prices are high because people can afford to pay such high prices. I suppose that the choice of the word “afford” is what you find troubling. So let me try again, “Prices are high because there are people willing to pay the prices.” OK? Otherwise there would be so few buyers that the prices would come down. Prices could remain a little above what people are willing to pay for a while if sellers are unable to liquidate at a lower price (e.g. a market price that does not cover a home loan) or perhaps due to lags in the market where prices are high and still there are few transactions - eventually buyers and sellers must come to an agreement for a transaction to happen.</p>
<p>MA home prices have tumbled 22-40%, depending on what study or what trend you want to believe. Houses are sitting on the market for months, whereas there used to be bidding wars. Yes, there are still people who can “afford” to buy a house, but the reason I posted that article was to show that many people cannot “afford” to,a nd are leaving the state. It’s a troubling trend, and it has gotten a lot of press.</p>
<p>As prices continue to fall, we shall see whether it becomes more sustainable for people who would like to buy where they grew up…or not. It’s very sad to think that people could not return to their hometowns to live, if they wanted to…or in some cases, even return to their state.</p>
<p>^^Unless my kids win the lottery - I don’t expect that either will be able to return to the state of MA - let alone their hometown - unless they want to live with us parents LOL - but that breaks my heart big-time - believe me :(</p>
<p>You and me, Jeepmom, since we are oldtime residents like you, and I would love to have my kids closeby in my olllllldddddd age…</p>
<p>My son isn’t interested in money management or biotech, which are just about the only careers paying enough money to afford buying around here these days…</p>
<p>negative, not false at all. But, a more important point is the TOTAL cost of doing business,of which labor is only one component. The low cost workers in and of themselves are only one facet of running a business, unless, of course, the business is pure services, such as consulting.</p>
<p>If, for example, an area has an abundance of low cost workers available, but extremely high taxes, rent and environmental or other regulations (as we do in Calif), it is still not a great place to do business. OTOH, a simple paint manufacturer or plating company, which uses skilled, low cost workers, cannot afford to grow in our state due to high environmental (air quality) regulations – the owner will move to Nevada instead.</p>
<p>Measurer and Bluebayou, let’s look at specific examples of low cost areas; Spring Hill TN (Toyota) and Spartanburg SC (BMW).</p>
<p>The companies found low cost workers and low tax costs. But since these localities also spend less than frost belt areas on schools and infrastructure and other public services, the companies and their employees may bear the extra cost of such things.</p>
- unless they want to live with us parents 
LOL - but that breaks my heart big-time - believe me :(</p>