Where populations are increasing is where people will be buying homes.
On December 22, 2008 the U.S. Census Bureau released good news for Arizona. Arizona was the second fastest-growing state increasing 2.3 percent between July 1, 2007, and July 1, 2008. This percentage increase represented 146,759 people.
A population increase of 146,759 people means 48,920 housing units were needed. How economists come up with 48,920 housing units is by dividing the numeric population growth by the average number of people per home (146,759 / 3 = 48,920). A housing unit is defined as an apartment rental, residential rental, new home or resale purchase.
This increase in population is a fundamental that helps reduce the oversupply of homes. Reducing the supply of homes helps stabilized our residential market.
According to the press release, the only two states losing population were Michigan and Rhode Island.
Below is information from the U.S. Census Bureau’s press release.
Leading 10 States / Equivalents by Population Change:
July 1, 2007, to July 1, 2008
