Wednesday, July 11, 2007

Booming California

Our current real estate market malaise can be attributed in part to an oversupply of homes currently for sale and a lack of demand. That condition will not last forever. According to a study, recently released by the state’s Department of Finance demographers, the state’s current population of 35 million will expand to 39 million by 2010, 44 million by 2020, 49 million by 2030, 50 million by 2032 and hit 60 million by 2060. Expanding population is not the problem keeping up with the demand for housing is.

Current land use policies, infrastructure and the cost of construction will not allow new construction to keep pace with current growth projections. So what will happen when demand exceeds supply? Right! Prices will rise.

Sutter, Yuba and Placer counties are predicted to be the fastest growing counties in the state during the next few decades while Sacramento County is expected to nearly double from its current 1.3 million people. El Dorado County is expected to grow from its current 175,000 to 315,000, Amador from 36,000 to 68,000 and Nevada County from 95,000 to 136,000.

If you’re looking to escape this growth in population, move to Sierra County above Yuba and Nevada. It’s the only California County expected to decline from its current population.


Post a Comment

<< Home