The Sacramento metro region will build more housing and office space in the next 25 years than any other Western megapolitan city except Las Vegas. There will be a vulture-like acquisition of property owned by old, declining industrial businesses in the Bay Area for pennies on the dollar.
Elsewhere, “The country's most heavily populated megapolitans brace for another boom,” predict Paul Kaihla and Krysten Crawford of Business 2.0. They say that over the next 25 years, “Most of the development will go up: Urban infill will outstrip suburban growth.”
Obviously, there is a new urban landscape developing on the Gulf Coast
from Houston to New Orleans, but urban hubs like Boston, New York, Washington,
as well as rustbelt locations like Pittsburgh Detroit and Chicago will
see a boom.
Business 2.0 likes Phoenix and Tucson because of their supply of raw,
buildable land at the lowest prices. The big draw is a Palm Springs lifestyle
at a substantial discount. It is predicted that Phoenix will remain the
top destination city for Americans moving from other states. Expansion
at Arizona State University that will increase its enrollment by 50 percent
to 90,000 students and generate more than 10,000 new jobs by 2020.
“North Carolina seems to lag behind the rest of the nation in real estate trends,” observes Renee Hentschel, an associate broker for Realty Executives in Hickory, N.C. "We hear about this big real estate boom and we're saying, 'Where's it at?' A couple of years later we hear about the slowdown. We're not slowing down here."
A mid-south real estate bet: Parcels along I-85 in rural North Carolina that will become part of a planned tech-research park to support the Research Triangle.
Quantities of cheap, prime greenfield surrounding Seattle, Portland and Eugene give the Northwest megapolitan explosive growth potential. By 2030, the three metro regions will be intertwined. CNN / Money likes Beverton, Oregon, the home to Nike's headquarters, and Intel. A light-rail train that went online in the late 1990s is driving development, which has been growing at a rate of $100 million per year.
In Idaho's Ada County, which includes the capital city of Boise, existing-home sales grew 16 percent from May 2005 to May 2006 and the median price increased 26 percent, according to Intermountain Multiple Listing Service statistics.
Meanwhile, the National Association of Realtors reported that the national rate of existing-home sales dropped 6.6 percent in May 2006 compared to May 2005.
Trela Bird, a Realtor with GMAC Real Estate in Utah, said the Greater Salt Lake City began to boom last year. "We're seeing a lot (of buyers) from California, and a little bit from some of the East Coast states, some from Texas, Arizona and Nevada. I think the news has gone out -- we're number four in job growth right now and prices compared to a lot of places are still reasonable," Bird said.
Business 2.0 reports that Florida posted the nation's highest job growth last year. Land scarcity will drive urban growth. The 65-and-up population will continue to swell, doubling by 2025. Best residential real estate bet: Preconstruction condo units between Venice and Tampa, where demand is so high that builders hold lotteries. Best commercial real estate bet: Inland lots in Manatee County, where cities will bloom by 2010. And, there’s no state income tax.
For more on Southern California commercial properties there is a great
information blog at www.socalindustrialrealestateblog.com.
Jodi Summers is Director of the Investment Division at Boardwalk Realty Santa Monica. For your real estate needs, e-mail Jodi Summers at email@example.com, or call 310-260-8269, or visit her website at www.santamonicalandmarks.com
ALL YOUR EX’S LIVE IN TEXAS, AND THAT’S WHY THE TEXAS REAL ESTATE INVESTMENT MARKET IS BOOMING
If you thought the real estate market has been hot in this millennium…just check out what’s down the line…In the 300 years, the United States has built more than 300 billion square feet of homes, offices, factories and other structures. A recent study from the Brookings Institution and Virginia Tech urban planning professor Robert Lang, shocked pundits when they predicted that the U.S. will build its next 200 billion square fee in the next 25 years.
The study notes that in a perfect world, new construction will grow to accommodate 70 million more people and to replace homes and offices wiped out by disaster and debilitated by obsolescence. The development budget for these new projects will grow to $25 trillion by 2030 - more than twice the size of the U.S. economy today.
Although real estate is not yielding the return on investment it did several years ago, it’s still holding its own. According to the National Association of Realtors, growth in the real estate market has slowed to about 6 percent growth nationally...with slightly higher grown here in SoCal. But, just because the real estate market has slowed down in our neighborhood, it doesn’t mean that great real estate investments are a thing of the past. There are still many real estate Boomtowns out there.
“Boomtowns' have double-digit increases ,” defines Dana Willett-Maier of Sandcastle Investments LLC, a Louisville, KY, real estate consulting firm that helps clients find and invest in "boomtown" properties across the country. “A boomtown is any area that experiences double-digit increases in the percentage of house-price appreciation from year to year and double-digit increases in the percentage of home sales each year.”
Southern California was a booming region until this year. Over the last couple of years annual home appreciation in places as varied Inglewood and Calabasas has grown by more than 40 percent.
Some of those that have made a lot of money in California have taken their money out of state – which is why neighboring states like Arizona and Nevada have had such incredible appreciation. Places like Austin have been a favorite of savvy West Coast investors…and Texas has become a hot place for Californians to invest. Earlier this year, when Mark Dotzour, chief economist for The Real Estate Center at Texas A&M University, gave a presentation to a group of Texas mortgage professionals, he asked how many of them had recently closed a mortgage loan for a California resident -- about 75 percent raised their hands in affirmation.