There's already evidence houses in the suburbs are declining in value.
And houses and apartments near light rail and train stations increasing in value.
From the historical comparison of what happened to farm houses 100 years ago, we can predict the decline in value of a typical suburban house.
NOTES:
A $200,000 house in 2006, before the recession, declined on average about 30% by 2010
We suggest suburban houses will make a slight comeback as the economy gets modestly better between 2011 and 2015
After 2015, Gen Y (then aged 15 to 35) starts 'driving' the housing market, and suburban house values decline.
By 2020 a typical suburban house is worth half of what it was worth in 2006.
After 2020, typical suburban houses decline in value at a steep rate, about 1% a month.
By 2030 most suburban houses have lost most of their value. They essential are worth what most farm houses were worth in 1930 - - spare parts.
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