Thursday, April 20, 2006


There never was a real estate bubble in the capital region. There was a shortage of listings, a historically low interest rate, investors and flippers turned off by the meager investment returns in equities and treasuries and investing in real estate and their were Bay Area Buyers escaping congestion and the high cost of housing in the Bay Area, discovering the Capital Region, but there was no real estate bubble. Why?……. Jobs.

According to the California Employment Development Department non-farm employment in the Sacramento Region between 1994 and 2004 grew by 195,000 new jobs. Then between 2004 and 2005 the area gained another 27,000 new jobs. Total regional employment in January of 2005 was 861,400 and 888,500 a year later.

New homes in the region were not built on speculation they were built to house an army of new employees to the region. So will that continue? Most likely according to the Sacramento Area Council of Governments. Our current six-county regional population will expand from the current 2.1 million to 2.3 million in another 4 years. Planners and demographers expect 2.5 million people hanging around the area in 2015 and within 45 years the area will have 4 million people. Why? …..Jobs.

Employment is the bell ringer of the housing market. Interest rates rise and fall. Construction and development costs continue to increase. Land becomes more scarce and expensive but as long as jobs are being created the housing market will do just fine.

A magazine recently ran a "Dilbert Quotes" contest. They were looking for people to submit quotes from their real-life Dilbert-comic-strip-type managers. These were voted the top ten quotes from the managers we work for in corporate America, circa 2004:

"As of tomorrow, employees will only be able to access the building using individual security cards. Pictures will be taken next Wednesday, and employees will receive their cards in two weeks." (This was the winning quote from Fred Dales, Microsoft Corp. in Redmond WA)

"What I need is an exact list of specific unknown problems we might encounter." (Lykes Lines Shipping)

"E-mail is not to be used to pass on information or data. It should be used only for company business." (Accounting manager, Electric Boat Company)

"This project is so important we can't let things that are more important interfere with it." (Advertising/Marketing manager, United Parcel Service)

"Doing it right is no excuse for not meeting the schedule." (Plant Manager, Delco Corporation)

"No one will believe you solved this problem in one day! We've been working on it for months. Now go act busy for a few weeks and I'll let you know when it's time to tell them." (R&D supervisor, Minnesota Mining and Manufacturing/3M Corp.)

Quote from the Boss: "Teamwork is a lot of people doing what I say." (Marketing executive, Citrix Corporation)

My sister passed away and her funeral was scheduled for Monday. When I told my Boss, he said she died on purpose so that I would have to miss work on the busiest day of the year. He then asked if we could change her burial to Friday. He said, "That would be better for me." (Shipping executive, FTD Florists)

"We know that communication is a problem, but the company is not going to discuss it with the employees." (Switching supervisor, AT&T Long


Post a Comment

<< Home