In various corners of the Internet, it’s pretty common to hear people talk about the housing market going through a repeat of the 2007-2008 housing collapse.
This topic has been beaten to death here. In sum, there are numerous factors as to why we’re not going to see a repeat of said events. We won’t be talking about those here.
However, the current housing market is rather interesting.
For one there have been several developments such as the COVID-19 pandemic that has fundamentally transformed the way people work and the type of housing they’re looking for.
You see, for the past three decades people were flocking to coastal cities and other prominent urban centers.
These are the areas where the best jobs, trendiest fashion venues, prominent entertainment spots, and high culture are concentrated in.
Many Americans who grew bored of their lifestyles in flyover America took the opportunity to move to big cities such as Los Angeles and New York City in an effort to strike it rich.
This was the norm for a few decades until the major Black Swan events that were the Global Financial Crisis and COVID-19 struck.
These events exposed many cracks in the US system.
For one, there many blue states — California, New Jersey, and New York come to mind — that are characterized by massive taxation and regulation. These policies make them rather expensive places to live in on top of being hard places to set up a business in.
As a result, millions of Americans have moved from the established northeastern hubs and coastal regions of the country and settled down in Middle America and the Sun Belt. In these locations, Americans can still keep their wealth and run their businesses without problems.
This trend accelerated during the COVID-19 pandemic. The government’s response to the pandemic likely pushed many people over the edge and prompted them to move elsewhere.
One place people are moving to en masse is the suburbs.
In all honesty, big American cities are not all that..
They’re filled with crime, expensive, and quite loud. On top of that, remote work has allowed for people to make a good deal of money without having to move to a costly urban center.
All things being equal, people prefer to live in more spread out areas that are more affordable and safer.
Suburbia is here to stay, folks.
And that’s a major blessing for income property investors.
Here’s the thing: Most Sun Belt states are friendlier towards business. On top of that, they have landlord-friendly policies.
And oh yeah.. these areas have tons of linear markets in the suburbs, where there isn’t much price fluctuation.
Linear markets are where reliable cash flows are found.
They are mostly located in the less publicized markets in flyover America.
Jason Hartman has long advocated for investing in these markets.
It’s where the real money is made and where you can lay the foundations for building your real estate kingdom.
Jason hammers this point home in a recent video titled “Properties Investors Are Buying TODAY, Will Inflation Affect the Holidays, & Investing In Apartments.”
Check it out to learn why income properties are still the best game in town as far wealth-building vehicles are concerned.
