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Go West? Demands for High-tech Jobs Sparks Housing Sticker Shock
by Broderick Perkins
The price is just about the median cost of housing in the area, but she can live with that. The climate is Mediterranean-like, the beach is 30 minutes through the scenic Santa Cruz Mountains and if her job doesn't suit her, there are plenty more to choose from. "The home prices are very high. They are very, very high. You do certainly get sticker shock. Even downtown Chicago isn't as expensive as this area, but I always wanted to work Out West. It's where the technology is," said Heck. She's not alone. "The same time I left, two people I know both moved to the Los Angeles area and they are technical engineers. I really feel that there is a true migration and it is definitely going West," she added. The American West's unique model of economic development, with its diverse employment base, is luring workers by the plane load. Creating a new demographic of migrant technology workers, the economy attracts workers not only from other U.S. regions, but from the four corners of the globe as well, according to a National Association of Realtors' trend piece by NAR research economist Kory Oscar Bockman. Bearing a politically incorrect title, "Go West, Young Man (For Jobs)," in NAR's August issue of Real Estate Outlook magazine for subscribers only, says California's high-tech diversity is a major factor. Biotech, chip making, computers, hardware, software, the Internet, Net connections, test equipment, exports, manufacturing, entertainment, travel and a host of other industries keep workers humming. "As goes California, so goes the West. Over 50 percent of the population in the region (of 13 states) resides in California. Indeed California is a good predictor of activity in the U.S., since one-eight of the U.S. population lives there," writes Bockman. While California gets the nod for the high-tech draw, low-labor costs in Nevada (especially Las Vegas) and Idaho draws migrants too. Arizona, a favored retirement area, Colorado with a booming Denver, Utah and Montana are also all in-migration states with a relatively high Gross State Product, NAR says. Washington, Oregon, Wyoming, New Mexico, Alaska and Hawaii, haven't fared as well for various reasons including declines in timber prices and tourism. "The key to strength in the West is steady job growth. Employment growth rate has exceeded the U.S. average since the middle of 1995, and will continue to do so through the 2000s," Bockman writes. Doug Gass, 36, Heck's real estate agent, is a former IBM employee who after only five years in the business nets 25 percent of his sales from technology migrants. He says the same technology that's drawing workers to the West helped Heck and others find him and his relocation package. Studies show young, technology-driven home shoppers flock to the Web in droves. "I'm not actively out there doing specific relocation marketing. I just get myself out there on the Net so people can find me," he said. It's all meant a housing boom Out West that shows no sign of letting up, Real Estate Outlook reports. That's not always good news, as indicated by skyrocketing home prices fueled by the non-stop, job-related demand for housing throughout the San Francisco Bay Area, which includes Silicon Valley on the southern tip. "Robust construction levels to meet a surge in demand have led to shortages of skilled labor and key building material, resulting in construction delays and increased building costs, constraining the growth of the home building sector," Bockman writes. "This constraint is still in place, as housing supply continues to be insufficient to meet pent-up demand." See what others are saying about this article or make your own views known. Go to the Interactive version. Published: August 27, 1999 Use of this article without permission is a violation of federal copyright laws. |
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30 Year Fixed: 3.87% 15 Year Fixed: 3.16% 1 Year Adj: 2.78% (U.S. Weekly Averages) Today's Headlines 08/27/1999 12:00:00 AM
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