As a market participant I am always looking for pattern recognition and trends. For real estate appreciation from increasing demand seems to be growing in Red Vs Blues states. Especially vulnerable might be non-metro areas of New York, Illinois and California. Core metro areas in all states are benefiting from the migration from suburbs to downtown areas.
Three reasons given by Arthur B. Laffer and Stephen Moore:
- Low or zero income taxes: “We predict that within a decade five or six states in Dixie could entirely eliminate their income taxes. This would mean that the region stretching from Florida through Texas and Louisiana could become a vast state income-tax free zone”, they write.
- Business-friendly, as in the restrictiveness of regulations that could stifle business growth. The fracking moratorium in New York is held up as a model for “business-unfriendly” and point to neighboring Pennsylvania where the natural gas industry is flourishing. In energy-intensive Texas, four of the top ten metro areas (in growth) were located.
- Having “right-to-work” laws that make it more difficult to unionize workers. In addition, they blame high minimum wage laws that “price low-income workers out of the job market. “Why Americans Are Moving from Blue to Red States” Friday, April 5, 2013.
- A fourth reason might also be that many are not unburdened by underwater mortgages and have more freedom to move.
Above are the reasons why there is a migration but an interesting question is will the migrating population bring a blue vote to red states. See below…
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