Will Higher Gas Prices Make you Rich?

Posted on June 18, 2009 | by Denny Oh

I recently took the Amtrak back from LA and was reading an article in the Rolling Stones about the pros and cons of rising gas prices.  The article was written by Tim Dickinson and I thought he has some interesting points.  Basically, Dickinson listed the ups and downs of gas prices going up, from $6 a gallon, all the way up to $20 a gallon.  And even though gas prices are still much lower than they were last year, we’re definitely seeing a rise in oil prices.

At $6 a gallon, Dickinson argues that on a positive note, SUVs will disappear, Los Angeles will get cleaner air and thousands of lives will be saved, due to less driving.  On the otherside, the lack in gas tax revenue will lead to the deterioration of roads, bridges and the privatization of highways and higher tolls.  As gas prices reach $10 a gallon, the article predicts that “electric cars [will] reign supreme,” biking will gain popularity and obesity will decline.  Conversely, Disney World will close and luxuries like snowmobiles will get too expensive to enjoy.

Dickinson goes further and points out that as prices get higher and higher, “Americans [will] flock to cities,” public transportation will be more convenient and at $20 a gallon, “ninety percent of Americans [will] live in cities” and “70 percent [will] never own a car.”  Will gas prices ever even come close to this?  I guess it depends on who you ask.  Clearly, we’ve seen several indications that this isn’t too far off.

And if this does happen, why wouldn’t people move downtown?  Why wouldn’t businesses move to higher density areas and why wouldn’t people live closer together?  Could rising gas prices ultimately be what causes downtown San Diego’s home prices to skyrocket?  I’ve always said that downtown San Diego condos prices will take off when a larger commercial sector gets established, but I never thought about rising gas prices being the driving factor…but I suppose it makes perfect sense.

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If you have any questions about downtown San Diego, or San Diego real estate in general, please let me know.  You can also see some of downtown San Diego’s best condo deals by clicking here.

Denny Oh 858–243–2092 [email protected]

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