Where would you rather live?
Saturday morning short
Here's a bubbly thought - - -
- Climate - similar to Minneapolis
- Per capita income - about $300 / month - source
- Top end office rental- $95 /sqft, 66% higher than Midtown Manhattan - source
- Apartment in nice neighborhood - $1,000/sqft - source
We're talking Moscow... as a warm weather fan who doesn't want to get run over in traffic, I count my blessings...
How can anyone afford to live if the average income is $300/mo. and rent is $1000? No wonder several families share one apartment!
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btw, you're stating the same refrain that is being repeated all over the San Francisco Bay Area with average SFH prices of over $700,000.
I studied the articles with exactly the same question you have Bonnie... at first I thought housing subsidies, a throwback from the communist era and the fact that communism discouraged property ownership were factors... but the RIS Media article claims 70% of Russians own their own home (and it goes on to say 70% want to move... I know Russian housing is "project"- like so I assume the owners were somehow deeded the property they were living in after communism fell).
The articles claim property prices are being propelled by investment. It makes sense that the skewed economics apply to the high demand of certain locales in Moscow... remember in 1991, the land under Japan's Imperial Palace was worth more than the whole state of Florida. Property development in Russia seems to be controlled by a handful of rich guys so they funnel the investment to where they want - and you know who gets richer in that scenario (think Halliburton). That extra cost inflates prices.
I didn't have more time to research this but it is fascinating... time to talk with my Russian friends.
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Honestly I can't say that the source is correct. Russia is huge, much bigger then you can imagine. And the median income number you mentioned is taken from the average - low income portion of population, which is about 30%. In Moscow people make a lot more money, I mean a lot!!! I came from that area so I can stand behind of what I am saying. Take a look at properties they are selling there, it will make you dizzy...
Research www.evans.ru
Not that I want to go back and live there, but I do know a few people who would.
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Hi Natalja, I apologize to everyone from Russia... I have many Russian friends and I know what you say is true... I was just trying to imitate what Seinfeld, the self absorbed NewYorker, might have said -
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It's OK. That self absorbed New Yorker probably came from Russia himself..hahaha... Or perhaps so uneducated, and never left the borders of New York.
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