Americans Ditching Overheated Housing Markets
In our December 6 issue we reported on the observations and research
of Jack Lessinger, suggesting that many Americans will opt for a
lifestyle that is calmer, less densely populated and much cheaper.
He claimed the next big wave in housing will be Penturbia�urban
developments in rural regions. Herein are some additional comments
about the housing market.
non-profit public policy think tank, reports that 25% of
Massachusetts residents say they would leave the state if the
opportunity arose. The No.1 reason cited was the high cost of living
coupled with housing�s lack of affordability.
says California suffers a net loss of 100,000 residents a year, as
homeowners cash out of appreciated houses and move to Arizona,
Washington, and Oregon. And as prices have climbed in these three
states, the latest trend for Californians� search is the Midwest
where spacious houses are available for half the cost of similar
space in Los Angeles.
The once bucolic
suburb of Long Island, now a heavily developed region next to New
York City, sees a similar trend, with 45% of the residents
indicating they might move out during the next five years. Younger
Long Islanders (ages 18 to 34) are spending more than half of their
income on housing.
Homebuilders Association reported that a comparable home in the
Deltona-Daytona Beach area, for example, costs about $194,000 versus
$434,000 in Long Island�s Nassau County.)
There are signs
too that Las Vegas is no longer the draw, as the median house there
has leaped to $283,000. Las Vegans, in fact, are starting to pull up
stakes for cheaper markets in Arizona...such as Phoenix, Tucson and
The Office of
Federal Housing Enterprise Oversight, which regulates Fannie Mae and
Freddie Mac, reports that Phoenix is now the hottest market in the
country. Home values have surged 55% over the last 12 months.