So what does this book tell us about our storied real estate market?
"I recently spoke to Joe Gyourko (an economist at Wharton School of Business), probably the premier real estate economist in the country for a couple of hours about this," Florida said. "It's not that superstar cities don't go up and down, it's that they are more resilient than other regions."
So if some of us are holding our breaths for reality to return to the land of surreality, Florida recommends a taking a deep breath. "I believe this clustering of people that make cities grow is a permanent demographic shift. That means that in the long term, there's going to be more stratification between these innovative economic centers and everywhere else. Unfortunately, that will be reflected in the real estate prices."
Even within the mega-regions, he says, not all real estate is created equal: "If I had to give advice I would say to buy single-family homes closer to the core, not in the outlying areas where the more affordable housing is. The really knowledge-driven people have to be more effective, so they have to use their time more efficiently, so center locations have become more valuable. Even in places like Washington, D.C., where the suburbs have been hit so hard (by the real estate downturn), the inner-city core has held up."