Leading Indicators of West LA's Economic Recovery

My neighbor , Candy Spelling, is showing confidence in local housing prices. As a patriotic American, she has not lowered the asking price of $150 million for this Little Holmby House:



I play golf on the golf course just out of sight on the south west part of the picture. This charming course is 1/2 mile from my smaller estate. The Playboy Mansion is just up her block to the North east.

That's income integration.

In West LA, many many homes are for "lease" rather than for "sale". Dora and I take this as a sign that people are betting that home prices will continue to rise in this fancy area. During this recession, it has been interesting to watch both demand and supply of homes for sale decline. Since many people simply hand their LA home to a child when they die or downsize , there isn't the "urgency" to sell that exists in many low quality of life cities.

Since, I have most of my wealth tied up in my home --- Candy Spelling's vote to press on to find a 9 digit bid buyer --- gives me confidence in my investment. Thanks Candy.

At the UCLA faculty lunches, I have suggested to colleagues that we collectively buy this house and all move in (like an old guy's and gal's dorm). The house is big
enough to accommodate our diverse lifestyles and personalities. It would shorten the
commute for many people and we would get more exercise with the pool and tennis courts. Senior faculty could better monitor junior faculty effort and vice-versa!

The Chair of the Department could quickly deploy people to meetings and external relations with nearby fat cats who might make donations to the department would improve as people would want to come over to party at our house.

Now there would be maintenance and incentive issues but smart economists could write a time consistent contract for this new "Econ Commune".

Would the other departments be envious of us? I don't think so.