Long Island

Boom Town
July 09, 1977

Why is housing so expensive here? Some special circumstances have held down supply, notably insufficient sewer capacity. But the important factors are on the demand side. Housing prices in Washington are astronomical for the same reason that Bloomingdale's has built two stores in the DC suburbs, its first ventures outride the New York area. It is the same reason Lord and Taylor has three stores hereabouts and Nieman Marcus will be moving in shortly from Texas. Why are there six Mercedes-Benz dealerships in the Washington area and only five in Chicago?