How is the real estate market different in Texas than in California?
Well, much of California’s land, particularly by the coast, is off-limits to development.
With less land available to develop, land prices in California have skyrocketed over the past 30 years (the length of time that California has been dominated by land use restrictions).
By contrast, Texas has comparatively few land-use restrictions. Hence, its housing market is stable. It did not boom as much and it has not gone bust as California’s has.
When home prices soar, people have to use risky financing to purchase a home. When home prices are stable, you don’t have to use risky financing to purchase a home.
Dr. Thomas Sowell points this out in his book The Housing Boom and Bust.
Dennis Prager called the following article a “crack-up.” Why? What’s so funny? The article does not mention the lack of regulation and state income taxes in Texas. Perhaps that was a cause of the state’s boom while California and company declined?
Texas became the USA’s second-largest economy during the past decade — displacing New York and perhaps heading one day toward challenging California — in one of the biggest economic shifts in the past half-century.
The dramatic realignment of the nation’s economy was illustrated by North Carolina, Virginia and Georgia all overtaking one-time industrial powerhouse Michigan in economic size from 2000 to 2010. The economic winners of the last decade are states that focus on raw materials, government and senior citizens. The big losers are places that make things — industrial states and even California.
USA TODAY examined each state’s gross domestic product to determine how the country’s economic output has shifted within its borders. The data, recently released by the Bureau of Economic Analysis, reflect population growth and income increases — in short, the economic weight of each state.
I write about real estate, refinance and the mortgage industry:
- Why Did Bankers Extend Loans To Greece?
- Texas Shows The Way In Economic Growth, Employment Gains
- Bad News: How America’s Business Press Missed the Story of the Century
- Who Wants To Rule The Reverse Mortgage Market?
- Mortgage Interest Rates Remain Near Record Lows
- Fannie, Freddie Asleep At The Wheel When It Comes To Mortgage Fraud
- Are You Ready For Fannie Mae, Freddie Mac To Demand More Cash?
- Fannie, Freddie Shares Rise In Value
- Fannie Mae, Freddie Mac Slow To Report Fraud
- JP Morgan Chase Agrees To Settle Mortgage Case
- What Is A Collateral Manager?
- Did JP Morgan Chase Mislead Investors In Its Mortgage Securities?
June 19, 2011
- Requiring 20% Down Payments To Get A Mortgage
- Wells Fargo Joins Bank Of America In Leaving The Reverse Mortgage Business
- What Are The Benefits Of Paying Off Your Mortgage Early?
- Buying A Lawyer, Delaying Foreclosure
- Homeowners In Distress – Doesn’t Your Heart Bleed?
June 16, 2011
- Wells Fargo, Bank of America and JPMorgan Chase Penalized By Politicians Over HAMP
- The Mortgage Interest Deduction
- What’s Behind The Decrease In Foreclosures?
- Major Banks Allowing For Mortgage Modifications
- Foreclosure Settlement Talks With Big Banks
- Advice For The Struggling Mortgage Holder
- Mortgage Interest Rates Dip
- Wells Fargo Leaves The Reverse Mortgage Market
