We all hear a lot about the problems of Connecticut, and its economic fortunes. A new survey shows that 47 percent of CT residents are considering leaving the state within the next 5 years, which ties an earlier record. Not only have companies left, but we are an aging state, with many people reaching retirement age, and moving for all kinds of reasons, not just to avoid our high taxes.
On the other hand, 35 percent of those surveyed thought that they were better off financially than they were a year ago, which is also a number that has gone way up; three months ago, that number was 26%. Some of that is national improvement, but we are seeing it here as well.
If we take those two statistics together, and apply them to real estate, what do we get? People have more money, but they may not be staying here. That set of facts should be overlaid on another tenet of real estate, which is that the market is always cyclical. What goes up must come down, but what goes down always comes up at some point. The other major tenet is location, location, location. However badly Connecticut's fortunes are lagging, we are still located on the coastline, and between two major metropolitan areas that are growing--NYC and Boston.
That leaves me thinking that investment real estate in our region will continue to prosper, and even do better. Money goes farther here, since prices are low, and people need to invest somewhere. The stock market is volatile, and is making investors nervous. Even if they leave the state, they can still own property here. Why not buy where you know the area, prices are low, and the location is good? I'm betting on that for the future. We've seen it in multifamilies, and apartments, and I think we will see it in individual houses and buildings as well. Holding on to real estate here can be a very good bet, and it's worth thinking about it, while looking for a place to put money.
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