Kyla Brooke
Kyla Brooke, Vanguard PropertiesPhone: (707) 481-0098
Email: [email protected]

3 Disadvantages of Booming Housing Markets After Big Business Success

by Kyla Brooke 07/21/2021


 Photo by Gerd Altmann via Pixabay

Booming housing markets are obviously bad news for buyers, especially if they're afraid they're about to buy smack dab in the middle of a bubble. However, there are also reasons why residents and even home sellers should fear housing booms as well. When a city or town undergoes rapid growth due to a major corporation striking it rich, it isn't all champagne and caviar for the everyday people who live in the neighborhoods. 

1. Owners Move Up Their Sale Dates 

Owners who want to capitalize on the housing boom face two major problems. The first is that they likely weren't ready to move, and the second is the question of where they should move to. Because housing booms extend far past where the corporation has set up shop, it's not as though owners can purchase a property in the next town over. To reap the profits of their sale price, they may need to move clear out of state! Add that to the added stress of an early sale date, and it's easy to see why sellers aren't always making out like bandits. 

2. Residents Face Increased Costs of Living 

When housing prices go up, so too does everything else. From insurance to groceries to entertainment, those with a steady income find that it doesn't stretch as far as it used to. So unless residents are planning to move to a cheaper area or they're about to get a serious raise, they're essentially left in a worse position. This undisputed fact has put residents in a tenuous position, especially if they were trying to save. 

3. Neighborhoods Lose Their Appeal 

Unfortunately, it's usually the same developers who are buying up property during housing booms. These owners are primarily concerned with how to squeeze the most money from the well-paid employees at the nearest corporation. And while this is understandable, it tends to whitewash neighborhoods so everything starts to look the same. Even the landowners who try to brand themselves as funky to appear hip the younger crowd tend to water it down to the point where there's little personality or charm to what were once thriving and close-knit communities. 

There's no doubt that corporations can bring unprecedented success to neighborhoods, but they certainly don't help everyone. The real value of a city or town doesn't come from CEOs, but rather from the people who work to build the community through its patchwork efforts. That kind of appeal can take years before it's noticed and appreciated and that's part of what attracts big business in the first place. 

About the Author
Author

Kyla Brooke

Specializing in Russian River and Wine Country, with a passion for real estate, my background as a Licensed Marriage Family Therapist, successful real estate investor, property manager for my own real estate ventures, business owner, educator, and strategic planner, I will bring a wealth of knowledge and experience that will back your real estate success story.