A reader sent me an interesting article today from Atlantic Monthly http://www.theatlantic.com/doc/200610/american-brains. It's written by Richard Florida, the George Mason University professor and author of The Rise of the Creative Class. It wasn't too long ago that academics and think-tank thinkers were championing the idea of Loan Eagles, brainy types who could work anywhere and who would choose to live in splendid isolation in remote parts of the country, writing software code on their laptops while gazing out at the Rockies from their redwood decks. While some of that may be going on, much more intensive growth has occured in what Florida calls "superstar cities." These include San Francisco, Los Angeles, Seattle, Boston, Austin and Denver as well as regions such as the affluent suburbs of Manhattan, Silicon Valley, and the Research Triangle in North Carolina. Many of these places have experienced the brunt of the real estate bubble and home prices there are now softening. Long term, however, they will likely see sustained support for prices as much as older, industrial cities such as Cleveland and Detroit see downward pressure. It's a megatrend, no doubt.
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