The Importance of Climate When Investing

By Alan Rosenthal

The study of demographics and demographic trends is fascinating. When you study the Census Bureau, the Brookings Institution and demographers a crystal clear picture appears. The areas in our country that are growing the fastest are states with sunny climates like those in the west and south such as Nevada, Arizona, Texas, Florida, Georgia, North and South Carolina and Tennessee. These states are also known as Sun Belt states.

The reasons for growth in these particular areas are two fold – the first being the Baby Boomer generation (those born between 1946 and 1964). America’s population reached 300 million on October 17, 2006, out of which are 78 million Baby Boomers. So many that every seven seconds a Baby Boomer turns 50 years-old and every eleven seconds, 60 years-old. We Baby Boomers, yes I’m one of them, want to retire in the sunshine. People from the Northeast and Midwest are tired of shoveling snow and layering up in the winter. They want to play golf and tennis in the sun. They want to help their stiff and sore joints by getting out of the cold and rain.

Think about the people you know, friends, relatives and co-workers who have retired and moved away. How often do you hear about people excited about retiring to North Dakota, Wisconsin, Michigan, Ohio, Pennsylvania, Vermont, Maine and other states with colder climates? People prefer retiring in Texas, Nevada, Arizona and Florida – Sun Belt states.

The other reason for Sun Belt state growth is the 18-30 year-old age bracket. This age group has the biggest propensity to move, whether it’s immigration or domestic migration. They are starting or are new in their careers and tend to move for climate, affordability and jobs. Where would you want to go if you just finished with school or had an opportunity to transfer jobs? Would you like to move, start your career or a family in a cold, windy city like Chicago? Maybe you’d think like me – I’d rather be in a nice sunny state to raise a family. So whether you’re talking immigration or migration the answer is still the same – people want to live, start their career and raise a family in a Sun Belt state.

Let’s look at some statistics from 2006. Arizona was the state with the greatest population percentage increase at 3.6% followed by Nevada, Idaho, Georgia and Texas. Arizona gained approximately 160,000 people. Texas, called the most magnetic state, had a total number of about 580,000 newcomers followed by Florida, California, Georgia and Arizona, all of which are Sun Belt states.

According to the estimates of the U.S. Census Bureau, the Northeast had a net loss of 375,000 people and the Midwest 184,000. The states that lost the most people in these regions were New York, New Jersey, Massachusetts, Illinois, Michigan and Ohio. While the western states had a net gain of 53,000 people and the South was the big winner with a whopping 500,000.

What do you think the results will be in 2007? What about 2008? Or even 2010? I definitely believe, as do the demographers, that this trend will continue over the next two decades. Remember in investing, think about Sun Belt states and know that the trend is our friend.

To learn more about how Real Estate Investments can help secure your family's financial future, go to Dr. Alan Rosenthal's website at FinancialHealthRealEstate.com where you can find more great investment information. And while you're there, please sign up for your FREE Financial Health Real Estate Starter Package full of tips, newsletters and much more. Plus, you are cordially invited to attend one of his real estate investment workshops by visiting FinancialHealthRealEstate.com/UpcomingEvents.html. For additional information listen to one of Dr. Alan Rosenthal’s investment talks at FinancialHealthRealEstate.com/InvestmentTalks.html.


Home About Dr. Rosenthal Rave Reviews Upcoming Events Credit Repair Solutions Articles and Resources Products Ask Dr. Rosenthal Schedule an Appointment FAQs Blog Contact Us	The Importance of Climate When Investing By Alan Rosenthal The study of demographics and demographic trends is fascinating. When you study the Census Bureau, the Brookings Institution and demographers a crystal clear picture appears. The areas in our country that are growing the fastest are states with sunny climates like those in the west and south such as Nevada, Arizona, Texas, Florida, Georgia, North and South Carolina and Tennessee. These states are also known as Sun Belt states. The reasons for growth in these particular areas are two fold – the first being the Baby Boomer generation (those born between 1946 and 1964). America’s population reached 300 million on October 17, 2006, out of which are 78 million Baby Boomers. So many that every seven seconds a Baby Boomer turns 50 years-old and every eleven seconds, 60 years-old. We Baby Boomers, yes I’m one of them, want to retire in the sunshine. People from the Northeast and Midwest are tired of shoveling snow and layering up in the winter. They want to play golf and tennis in the sun. They want to help their stiff and sore joints by getting out of the cold and rain. Think about the people you know, friends, relatives and co-workers who have retired and moved away. How often do you hear about people excited about retiring to North Dakota, Wisconsin, Michigan, Ohio, Pennsylvania, Vermont, Maine and other states with colder climates? People prefer retiring in Texas, Nevada, Arizona and Florida – Sun Belt states. The other reason for Sun Belt state growth is the 18-30 year-old age bracket. This age group has the biggest propensity to move, whether it’s immigration or domestic migration. They are starting or are new in their careers and tend to move for climate, affordability and jobs. Where would you want to go if you just finished with school or had an opportunity to transfer jobs? Would you like to move, start your career or a family in a cold, windy city like Chicago? Maybe you’d think like me – I’d rather be in a nice sunny state to raise a family. So whether you’re talking immigration or migration the answer is still the same – people want to live, start their career and raise a family in a Sun Belt state. Let’s look at some statistics from 2006. Arizona was the state with the greatest population percentage increase at 3.6% followed by Nevada, Idaho, Georgia and Texas. Arizona gained approximately 160,000 people. Texas, called the most magnetic state, had a total number of about 580,000 newcomers followed by Florida, California, Georgia and Arizona, all of which are Sun Belt states. According to the estimates of the U.S. Census Bureau, the Northeast had a net loss of 375,000 people and the Midwest 184,000. The states that lost the most people in these regions were New York, New Jersey, Massachusetts, Illinois, Michigan and Ohio. While the western states had a net gain of 53,000 people and the South was the big winner with a whopping 500,000. What do you think the results will be in 2007? What about 2008? Or even 2010? I definitely believe, as do the demographers, that this trend will continue over the next two decades. Remember in investing, think about Sun Belt states and know that the trend is our friend. To learn more about how Real Estate Investments can help secure your family's financial future, go to Dr. Alan Rosenthal's website at FinancialHealthRealEstate.com where you can find more great investment information. And while you're there, please sign up for your FREE Financial Health Real Estate Starter Package full of tips, newsletters and much more. Plus, you are cordially invited to attend one of his real estate investment workshops by visiting FinancialHealthRealEstate.com/UpcomingEvents.html. For additional information listen to one of Dr. Alan Rosenthal’s investment talks at FinancialHealthRealEstate.com/InvestmentTalks.html. ©2008 Financial Health Real Estate, Inc.