The Collapse of American Cities has begun. And yours is next
Do not believe the title of the video, it is a bit misleading
A few weeks ago in a newspaper considered The Economist
An article was published under the headline 'The Exodus from the Big Cities'
My colleague and I in the real estate world sympathized with the feeling that demand in the suburbs was growing, probably at the expense of city centers.
But is this the case in all cities in the United States?
Not sure
The major sufferers are undoubtedly New York, and San Francisco, who regardless of Corona have lost many residents because of the cost of living
Cities like Seattle and Dallas, as well as other cities, benefited from the desolation. Because the same people who decided
Leaving New York and San Francisco, coming en masse to areas where their money, is worth more.
This trend received a mad boost during the corona period, which together with the zero interest rates, further increased the demand in the areas in question.
A man who owned a two-room apartment in Manhattan, measuring 800 sqft
Can get a mansion in Dallas, of 4000+ sqft with pool.
The trade-off is clear.
But are we looking at a temporary phenomenon? That the day will pass when Covid 19 is already behind us?
It depends on who you ask.
In the tech sector, giant companies like Google have announced that by 2021 they will not be back from work, and it could be that 2021 will become an eternity.
How will this phenomenon affect office real estate?
On the demand to live close to the office?
At the same time, the retail industry in the United States, stores that have already suffered a decline in their value over the past decade, is dying
And some will be hit by a death blow in the coming plague, either offering services online, or crashing.
On the other hand, there are sectors such as tourism and entertainment, which will return as soon as the corona passes. But will the output they had pre-cobed return quickly?
Domestic tourism, large tech companies, and entire real estate sectors are experiencing significant increases because of the situation, so at least we as real estate investors have the privilege of directing our investments in directions that will yield us money even in such obscure times.
Personally, I focus on areas with low rents.
And in luxurious luxury homes.
Both are areas in which I see an increase in corona sponsorship.
Where do you think the coming months will bring the world of real estate?
Do we really see a collapse in the big cities?
Or just a recession that will pass the day after the corona?
How significant are the upcoming elections, to America's economy? To the economy of the world?
Good week to all of us ??
And keep healthy
* Attached is a highly recommended video
— feeling grateful
The Collapse of American Cities has begun. And yours is next
This is the San Francisco Bay Area. It has been one of the biggest economic HUBs of the world for the last 50 years. In fact, if this region of just 18,000…
Link to the original post on Facebook - Works on a desktop computer (To view the post must be members approved for the forum)
I would not attack the luxury market because it is the first to be hit in case there is a crisis here.
At the moment, the administration is fueling the capital market and everything looks rosy. After the election, the president will have to deal with a budget deficit and possibly also with a mass crisis of the homeless and those who refuse housing.
On democracies on the verge of dying. Lots of taxes and crime is raging. You'll add a lot of Corona rules, Luke Downs and a lot less work, and you'll get a city that's already dying.
Unless Trump is elected it will continue and incidentally to the whole of the US as well.
In my opinion one of the criteria for investment should be a republican state and nothing to do with politics.
Philadelphia on the rise and will keep going up