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  • From: Gene GeRue <genegerue AT ruralize.com>
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] bubbles
  • Date: Wed, 01 Nov 2006 11:43:31 -0600


As much as 30% of California's employment increase in the last few years was in housing, agents, brokers, carpenters, etc. With the economy slowing in general the housing bust will only add to the problem.

An even higher percentage of Arizona economy is tied to real estate. It has been the largest economic factor for about 40 years. Arizona is number two in population increase after Nevada. Las Vegas has posted phenomenal percentage gains, skewed because LV has a relatively small population so a given number of people moving in more strongly affect the percentage of gain. I wrote in my book about how LV bought a large ranch north of town for its water rights--without those rights, growth might be stymied.

Most people are unaware of how many people make a living in real estate. Here is a partial list of those involved in new home production: appraisers, surveyors, developers, grading and digging equipment operators, pipe manufacturers, road contractors, concrete plant workers, utility company workers, builders, manufacturers of cement, wood products, electrical, plumbing and roofing materials, concrete contractors, framing carpenters, roofers, plumbers, electricians, finish carpenters, manufacturers of doors and windows, flooring products, paint, faux stone, brick, kitchen and bath and lights and heating and cooling units, furniture manufacturers and salespeople, insurance companies and agents, title companies and escrow agents, mortgage companies and reps, real estate companies and Realtors, moving companies, landscapers. And all those receptionists, secretaries, bookkeepers and accountants that keep the various offices functioning.

Those involved in the resale market are fewer but still a very substantial workforce.

As long as people continue to flood into Arizona it will continue to be a solid real estate investment market, both for homeowners and investors. Until I lived there I thought it was a barren desert. Now I know that it has more water than it needs. Because it is a desert with minimal rainfall, Arizona has had water planning for decades and it has paid off.





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