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Housing Bubble Popped, Western Cities Face Long Road Back

Posted By relocation On August 28, 2009 @ 8:30 am In Moving,Real Estate,Relocation,Relocation Data | No Comments

I wrote a few months about Richard Florida’s assertion [1] that Western cities that in the past have enjoyed huge influxes of folks from the ‘Rust Belt’ face significant challenges in this recession.

We’re starting to see just how significant.

An article in the New York Times [2] points out some startling statistics for 2001-2007.

“About 20 percent of private industry growth in the United States was tied to real estate and construction. In the Phoenix area, almost 36 percent of growth in the private economy during that period — more than $34 billion worth — came from real estate and construction.”

I’m sure these areas have always had higher proportions of their economy tied to construction and real estate. However, it shows the danger in that overreliance, and it shows that these areas, more than most, will have a hard time digging out from the aftermath of this recession.

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URL to article: http://blog.relocation.com/housing-bubble-popped-western-cities-face-long-road-back/

URLs in this post:

[1] Richard Florida’s assertion: https://www.relocation.com/blog/why-where-you-choose-to-live-is-so-crucial-to-your-future

[2] article in the New York Times: http://tinyurl.com/l85d5n

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