The migration from states such as New York, New Jersey and Illinois to those in the south of the country has had a number of effects, including triggering a new construction boom
Those who are very close to the technology industry have an inkling that there is an upcoming boom in real estate. According to the realtor’s website, there is a strong demand for luxury homes in the states of California, Florida, Arizona and Texas.
As a matter of fact, more than 40% of Americans now own their own home and this trend does correlate with a decline in interest rates. The average American home price has increased by 0.4% since 2014, according to Zillow.com . Compared with other major markets like London and Hong Kong , income levels here remain relatively low relative to other major nations including Japan and Taiwan .
Moreover, people are becoming increasingly concerned about their retirement assets because concerns about wealth replacement preceded by concerns about longer-term wealth preservation due to stock market volatility throughout 2015/16. This can be reflected by how far down investment returns keep going since last year’s peak levels:
Real estate prices were up 2.6% — or 10% — during this time period according to Zillow data; so on the surface it seems like more expensive housing stock might be good news for Americans’ finances.
One of the reasons for this construction boom is the tax advantages offered in southern states
It’s a foreshadowing of the future: New York and New Jersey will be nothing more than “tax traps” for the rest of us. Maybe we are wrong, but we will see a similar trend in other states. If you want to be wealthy in US, don’t move there. Just buy a house in California or Florida, rent it out and make your money elsewhere.
But if this trend continues, we can expect more people to come to the south in search of escape from taxes and crime — not because they want to live there, but because they want to avoid troubles.
The warmer climate and slower pace of life are also factors that have contributed to the increase in construction
Luxury apartments are popping up in Florida and other cities and states, with prices ranging from hundreds of thousands to millions of dollars.
The growth in luxury housing dates back to the 1980s, when interest and demand for homes in the United States began to rise.
The new construction is not just limited to housing: commercial development
A recent article by Jane Friedman states that the new construction boom in the United States is not limited to housing. According to the real estate industry, there’s a total of 1.5 million units of new construction activity going on right now, and it doesn’t appear to be slowing down anytime soon.
The boom has been fueled largely by high demand for housing, but there are other factors at play as well. The unemployment rate has dropped significantly since late 2008 and the stock market has still gained over 20% in 2015, despite many indicators pointing towards a decline in economic growth.
One of the most talked about factors behind this sudden development is the fact that more people are looking for affordable housing options and are moving out of state or across the country to do so. New construction projects have increased nearly four-fold since 2010, and some say that this trend may continue into 2022.
We don’t see anything particularly new about this boom; it’s just a continuation of what we’ve seen before and what has been happening for years now. But there is something more significant behind these numbers than one might think at first glance: this development isn’t just limited to housing; commercial development is also being fueled by new construction activity in major markets such as New York City (NYC). This year alone, commercial developments have already created more than 50,000 jobs – up from 35k jobs last year — when all projects were completed (not counting cranes). The number of retailers and restaurants opening each month continues to skyrocket as well.
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