Might be good for low end apartments and condos but certainly not the overpriced residential property in bubble markets.
It is not meant to be a direct relationship to a specific type of housing (or its associated socio-economic level).
More related to what I intended to illustrate is that if the forecast calls for a strong and continuous growth in population, (with a strong percentage coming from immigration *and what a specific group represents in terms of birth-rate*), then the benefit will be in continuous demand for products and services of various types. This generates consumption and employment allowing for jobs to be more readily available. In turn, if people are employed, then housing will be needed as these people are NOT speculators since they USE the home, AND more importantly, tend to have their own families sooner than the norm, (with rather larger numbers as well).
If one accepts that the birth rate for the Hispanic group is generally higher than the US average and/or other specific group, then such growth will begin to take scary proportions, such as the ones I posted about Mexico. In addition, people in the US have far more opportunities to educate themselves and in general make a better life than elsewhere. Therefore, as it can already be seen in many instances, the growth generated by the Hispanic population will not necessarily translate as prospects for low income housing alone... There may be some surprises... if you save and live an austere life, it does not take many [picked] tomatoes to pay for a college education for one's children, particularly when there are low interest loans to pay for it... -g
This is a global picture, if one wants to take it to the specific city, then one must go to the detail of such city and take other elements into account; specifically, income tax considerations (not for nothing a desert rat hole like Las Vegas -or Nevada for that matter- is growing at something like 60%......). It puzzles me, however that Texas (with no state income tax -just like Nevada-) has not enjoyed the same growth... could it be the muggy weather.... hmmm possible, I do not really know.
At a given moment in time the condo market may be oversaturated by other more specific, (to a particular city) factor. However, even then such 'bust' as you make reference, could be temporary given the projected population growth overall and rather than a bust is a mere 'pause'.
My main point is... population growth in the USA WILL be considerably stronger than in years past. Personally, I do not believe the US officials really know the magnitude of the difference, by the time they will be more in tune to what will happen, there will be some surprises. |
