By now, the real estate industry’s battle cry has become accepted and common knowledge, seemingly accepted by consumers, commentators, and politicians alike: We must fix housing in order to fix the economy!

But what if our common knowledge on the subject is flat-out wrong? What if – and here’s a world-changing idea – housing isn’t central to economic recovery, at least this time around? Imagine, for a minute, if we actually allowed banks the ability to enforce their legal rights on a non-paying borrower? What if we let the loan terms borrowers agreed to when they took out a mortgage actually mean something?

Would it be the end of the world as we know it?

“Marketing is a battle of perceptions, not products.” That was a line from last night’s episode of Mad Men. The show’s sub-plot was how a dog food company was losing market share because it was learned that its product was made out of horse meat. In testing, the dog owners were pleased with how much their pets enjoyed the product. But upon learning it was made out of horse meat, they wanted nothing more to do with it. The solution was to change the name and then the product will sell.

How does the above story relate to Boston real estate? Well, I noticed on page 14 of Boston Homes newspaper an open house yesterday for 6 Arlington Street. Thinking this might be a new listing, an agent in my office went to the open house. Apparently, this is an old listing with a new name. When listed with one real estate agent, it was advertised as Zero Marlborough Street. The new listing agent now advertises the same property as 6 Arlington Street.

The TV show Mad Men had another line that I liked: “It’s much easier to get into the mind first than to convince someone you have a better product than the one that did get there first.”

File Under: It’s not always about location, location, location. It’s also about … perceptions, perceptions, perceptions.

The feds have earmarked $22 million for a complete “green” makeover of Southie’s historic Old Colony housing project. Because the money is from the economic stimulus package, one would assume it’s on a construction fast-track. The story says displaced residents will be found new housing during each phase of construction. But where will they go? There might be some rental possibilities here.

I was just informed that the owners of Top Shelf in Beacon Hill are now going to open up a Tanning Salon at 125 Charles Street.

Apparently, tanning machines are the rage with college students. Yesterday, the Wall Street Journal reported: In Student Housing, Demand for Tanning Salons Still Hot

Hmm….I wonder if Suffolk University college students know how to spell…MELANOMA.

File Under: Oven Baked

Two Generations – One Problem.

The drop in the US housing market is being partly compounded by a tri-effect created by the baby boomers and the echo boomers, (echo boomers are those born between 1989 and 1993).

1. The millions of graduating echo boomers who enter the workforce annually are, like many Americans, finding it extremely difficult to find employment. Instead of going solo, getting apartments or committing to first homes, they are returning back to their parents and taking refuge.

2. At the same time their new boomer landlords are not retiring because of recently depleted retirement funds, the drop in equity in their home and battered stocks. Coupled with a recession where many eliminated jobs will not return there was talk of 10-11% unemployment before we reach the light at the end of this economic tunnel.

3. Currently and for the foreseeable future we are not building or retrofitting the typical number of affordable entry level rentals. When the economy strengthens (lets say 2011) we may face a huge shortage, triggering a spike in rental prices.

Could these two generations could end up stifling US recovery? Is this the ultimate catch 22 or just a red herring?

Source of the idea: Huffington Post.