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.