The housing boom and subsequent bust has meant a redistribution of the population in certain areas of the country. Many families migrated to areas where the values were quickly rising, but may have lost their home and been forced to relocate to an urban apartment. This could account for the significant population growth in some US cities. For more see the following post from Blown Mortgage.
The housing slump has certainly had some unforeseen consequences. For instance, it may have actually helped boost the number of people living in New York City, Los Angeles and Chicago.
A story by Bloomberg News theorizes that falling home values in the suburbs of California and Florida may have helped cities such as New York City grow.
During the housing boom, home values in parts of Florida and California skyrocketed. This attracted a lot of people to these states, many of whom were hoping to cash in on the real estate gold rush. Of course, things are different now. Home values in these two states have fallen dramatically, as much as they have in any other state.
Suddenly, not as many folks are rushing to these sun-soaked communities.
This has benefited the three biggest cities in the United States. According to Census Bureau reports, New York City's population increased by 53,000 residents from July 1, 2007, to July 1, 2008. During the same period, the population increased by about 27,000 in Los Angeles and about 21,000 in Chicago.
The Bloomberg story says that the country's migration bubble has burst. This means that people are no longer flocking to states such as California or Florida that benefited from unrealistic housing appreciation.
This story is fascinating because it clearly shows how significant of an impact the housing market has on not just our economy, but on where people live and work and play. I've always known that the housing market's impact is huge. But sometimes, you need a reminder.
This article was republished from Blown Mortgage.