Bloodhound Blog is two years old tonight. Congratulations to all the Bloodhounds. Here’s a little something from the archives to demonstrate my improvidence:
How can this development persist in a real estate market that all experts predict to plunge? The simple answer is that demographics are on California’s side:
1- Population still grows here statewide at a 1.5% annual clip. Now that may seem like anemic percentage growth compared to Nevada and Arizona but look at the astounding number of people moving to the Golden State. California enjoys a net gain of some 700,000 people each year.
2- There is a housing shortage in California. The affordability index may not be an applicable measure moving forward.
3- California employment is holding steady, in fact, a net gain of higher paying jobs are coming into the state. Why? California has high taxes and is hardly business friendly. Businesses want to be near the huge consumer base (the fifth largest economy in the world) that are California residents.
4- People would rather live in California than Buffalo.
Oops. I was bit early with the recovery prediction.
Congrats Greg and Cathleen.7 comments