Population growth is but one of the components of demand for real estate, as long as there is the economic capability to complete the transaction. In economics we call that Effective Demand, which is not only the desire of a product or service but also the ability to purchase or acquire. Other demand factors for real estate include supply, available rentals and listings, future value expectations, alternative uses of capital, capital budgeting and our whims and fancies as humans.
Jobs are not always a requirement for growing real estate markets. Just look at how retirement communities have exploded across the country. These communities create jobs as people that have resigned from their positions, relocate and retire.
Not all markets are growth markets, despite the U.S. projection to hit 400 million people by 2050. Imagine a market with a declining population and no hope in the foreseeable future of altering the trajectory. That essentially describes what markets face when they lose demand over time.
The following two tables list the fastest growing populations in the U.S. as reported by Wall St 24/7 based on U.S. Census data. In addition to the data provided by Wall St 24/7, included are five-year job growth rates through February 2015.
As mentioned earlier, population growth is not everything to a community but it does have the potential to generate effective demand.
To read the entire article on the fastest growing markets click http://247wallst.com/special-report/2015/03/30/americas-fastest-growing-cities-2/
To read the entire article on the fastest shrinking markets click http://247wallst.com/special-report/2015/03/31/americas-fastest-shrinking-cities-2/
To view the global population estimates in 2050 click http://www.census.gov/population/international/data/countryrank/rank.php
Unlike most of the developed countries in the world, the U.S. will have growth population numbers in the coming decades – and that translates to increased real estate demand.