Interesting article from my CRIS instructor-
The Effect of the Economy on Real Estate
One of the real concerns that many investors continue to have involves the direction of the economy in the United States. The Bureau of Labor Statistics reports that the highest unemployment rate our country has seen since the 1980’s occurred in 2009. The good news is that it has improved significantly since then. The bad news is we are not yet at full employment.
In the western United States, we are seeing some good indicators that growth is occurring. The construction sector, among the hardest hit over the past five to six years, is showing new growth, up over 8.3% in the past 15 months.
Much of the growth on the west coast is coming in computer-related and green energy technologies. Intel has their new $4 billion plan in Hillsboro under construction; Vestas (a wind energy company) is building a $66 million headquarters facility; Solorworld is adding 1,000 jobs; Daimler is adding 350 jobs; Computer Services is adding 250 jobs. This is great news not only for employment, but for real estate as well.
All those workers need to be housed for their jobs (office and/or industrial spaces); those workers need places to live (housing); and they will have income to spend on food, basic necessities, and recreational spending. We need to keep a close eye on the unemployment rate, as it will give a very good indication of the future direction of all the related real estate growth – and how long it might continue in a positive vein.
Source: REIS Observer, Portland, 2013
This information is from sources deemed to be reliable, but must be verified with ones’ own legal, accounting and tax professionals. This e-note is provided as information only, and is not guaranteed.