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December 28, 2007

The housing crunch in North Carolina

Although the housing and construction slowdown has now come to North Carolina, a new national study shows adverse impacts are expected to be less in our state than in others. What is keeping housing stronger in most of the North Carolina market? Listen

Dr. Mike Walden, North Carolina Cooperative Extension economist in the College of Agriculture and Life Sciences at N.C. State University, responds:

"Several reasons. I think number one, North Carolina in recent years has had a stronger job market: more people coming here for jobs, more creation of jobs. That's helped keep the demand for homes higher perhaps than in many states in the country. We've had stronger in migration. We are still a place that attracts folks from out of state, perhaps coming here to retire.

"We're also a state that has geographical room to expand, especially in the interior of our state, where the majority of the population is. The importance here is that if you do have geographical elbow space, that allows builders to build more homes, and that keeps housing prices more moderate. And then working together with that factor is the fact that we've had slower increases in housing prices. Less speculation has been here, and it's really the big speculation in housing prices nationwide that eventually led to the crash. So, I think for all these reasons - of course, we are seeing some slowdown - but for all these reasons, the slowdown is less dramatic in North Carolina than in the nation.

Posted by Dave at December 28, 2007 08:00 AM