Several readers want your opinion on this: "How about, which type of housing will lose more value, and which will hold up better?:

1) Condos in established urban centers (NY, SF, Chic, Phil, Boston)?

2) Condos in recreated urban centers (LA, Milwaukee)?

3) Exurban McMansions in developing areas far from the urban core? 4) Older suburban houses in communities reaching 50 years old?

5) Suburban or vacation area condos (Las Vegas, Miami, Glendale)?

"Believe it or not, based on demographics, I have the most hope for condos in recovering urban areas. They aren’t overpriced, and the demographics are in their favor. Demographics are in favor of condos in established markets as well, but the prices there spiked too high."

"Perhaps it’s Brooklyn bias, but I’m more worried about the suburbs. People aren’t going to choose suburban condos when the real thing is available. The exurban areas, too, will not be attractive when there is value closer in. And the older burbs are reaching the age when city neighborhoods suffered blockbusting, subdivision, and the beginnings of abandonment."

"I’d say if you want to live in the burbs, you have to go with the blue chip towns — those with good schools, good quality homes, and rail stations in regions that have them. When the bubble is over, that’s what the market will contract to."

A reply, "I think the price of gas may come into play here. If condos become somewhat reasonable in urban centers, that market will hold up better as people will choose them for commuting purposes."

Another, "My husband, an architect with a great interest in urban planning, has said for years that the suburbs will eventually be the ghettos. I think with the rising gas prices and the tendency here in CA for multiple/hugely extended families to live in one home (creating density where it was not designed to exist), he may be right sooner than we think."

Another concurred, "I agree with your husband and have felt that way for years. In Chicago the Cabrini Green housing development is 1 mile from the Oak St Beach, 1 mile from the Board of Trade and the loop. It has always been to valuable a location with quick and easy public transportation to be kept as a public housing facility. In Chicago they have already moved a lot of tenants to Schaumburg, Round Lake etc."

From Texas, "That’s a great point. They WERE the ghettos in Houston and Dallas in the aftermath of the 89s bust. Some of them still are."

One said, "IMHO is its going to depend on the state of individual city. Basically if the cities are clean and have a lot to offer, upper income groups will go back. We’ve already read how many retirees are already heading back to some urban areas. Still other cities are too much in a state of deterioration and probably won’t be getting a lot of investment in the near future."