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[Gene GeRue <genegerue AT ruralize.com>]

> 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.