The layoffs are really getting going here in Ohio. There were two big stories in the newspaper today about layoffs. The question is how will this affect my rental property business and how will that affect REI in general? It would seem logical that employees losing their jobs now will result in more renters later, but also add to the glut of unsold houses on the market as some of these houses are foreclosed upon (thereby lowering home prices). I would also surmise that as layoffs start to really hit the headlines, people will further reduce spending and certainly not be buying homes.
Any other opinions? Anyone else seeing layoff stories in the headlines of your newspaper?
I haven’t seen too much in western Mass., but usually the maufacturing jobs up here go first. In my town, the local hospital is one of the main employers. I’ve seen a lot “construction” type workers getting their nursing degrees up here. There’s a huge shortage nurses. They pay around $18 - $22 to start. I think high unemployment could be a good thing for REI’s. The rental market will increase and the SFH’s will be selling at a big discount! Even if times get really bad, Section 8 programs will step in for many people/landlords. I hope my view is a realistic one. But I remember in 2001, the housing market didn’t take off with a dcrease in interest rates and home prices. People were holding back on buying a house during economic uncertainty, even though it was the perfect time to buy a home. I’m hoping to take advantage of this next cycle.
When certain areas in this country hit bad economic times people WILL leave. I’m seeing that exact situation here in RI. Our population is actually shrinking. This is NOT GOOD for rentals or sales.
The days of people just staying certain areas for life are slowly coming to an end in this country. People will leave for better and/or ANY economic opportunity.
Here in Northern NJ, the past 5 or so years, people were moving to western NJ where there was a lot of new home construction and cheap real estate. But now that is stagnant and people are foreclosing or moving back here where the jobs are and closer to NYC. residential sales are not good, new home construction has dropped off a lot but only to a certain level. At like the 2 to 3 million dollar level and above, they are not really affected yet.
I think that is a separate trend going on. Instead of buying a 5 million dollar huge house, people are buying a 2 or 3 million dollar 3000 sq ft home but want really nice mill work, expensive marble bathrooms, upgraded fixtures and top of the line appliances. Bigger isnt better anymore.
If I remember to bring my camera to work one day next week, I will post some pictures of the home we are working on. I haven’t seen wood working like this in a while.