Perhaps the biggest challenge facing the Obama administration is implementing a new energy program. As gas prices rocketed skyward 6 months ago, calls for energy reform were rampant. As the economy slides further into a recession, focus has shifted towards the financial markets, manufacturing, and stabilizing housing prices.
Economist have long argued that even with hybrid vehicles, hydrogen batteries, and renewable energy resources, Americans will have to alter their driving habits and live closer to work. Many have called for stiff gasoline taxes, in order to keep the public’s focus on the impending energy crises and influence population migration.
UNDERSTAND THE ECONOMIC FORCES AT PLAY
There is a very real possibility that the decades of expansion and urban sprawl will shift back towards centers of production and commerce. Because of extremely slow changes in the supply side of Real Estate, home values and market rents in certain suburban areas may experience a prolonged decline while metropolitan areas will experience a resurgence.
Make sure you understand what the economic drivers of your market area are and investigate changes in demographics and population movement. Though it is extraordinarily difficult to project long term growth in any market, it is foolish to ignore the myriad of economic indicators and assume away changes in consumer behavior when making investment decisions.
Photo Credit: diaper
Article Author:
Anwell TsaiAnwell has written 16 articles for us.
Visit Anwell's Website: http://www.ValuationHome.com
Anwell Tsai, a Realtor for Real Estate One, grew up in the Real Estate business. Anwell is extremely interested in analyzing property from a variety of viewpoints, utilizing different financial models. He explores various issues in Real Estate on his blog at ValuationHome.com. When he is not out looking at homes, Anwell, a conservatory trained violinist, loves expressing his creative side through the joys of music.
Joshua Dorkin
Charles Feldman
Ted Karsch.
{ 1 trackback }
{ 2 comments… read them below or add one }
I agree with you. The Europeans have always done this. Lived where they could walk to work and saved cars for weekend fun. They have always had triple our gas prices, just seems because of the way they live it has not affected them as much? I read an article from Zillow, who seems to have the same philosiphy. Good analysis.
Audrey’s last blog post: OPEN HOUSE 12/14/08 1:00 to 4:00 756 Tiffany Drive Gaithersburg, MD 20878
I do agree with you. Thanks for sharing wonderful information.