Real estate prices by-and-large are driven by simple economics – supply and demand; the greater the demand for real estate the higher the price. Population growth in any area will almost always have a positive impact on real estate values. Growing areas with a growing population will almost always be accompanied with job growth and these are all strong positive indicators of a healthy real estate market. As the country’s population grows so does the demand for housing and as the Census Bureau reports the U.S. population is expected to increase dramatically in the coming years.
Population Boom Will Drive Real Estate Industries
When the Census Bureau released population projections last month, more attention was paid to the country’s changing racial composition than to the massive scope of the increase. What’s clear is that the latest numbers will inevitably give the real estate business a boost.
The Census Bureau is projecting an increase of 135 million people in the U.S, a 44 percent rise, by 2050. That’s equivalent to the entire populations of Mexico and Canada moving to the United States.
The bureau estimates that this population boom, largely fueled by immigration, will require 52 million new housing units, along with more places for people to shop and work.
Source: The Washington Post, Steven A Camarota (08/31/2008)
Posted by Carter Brown
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