Phoenix was my vote all along, but San Diego could vault ahead. In Phoenix, the Arizona Republic once reported that over 40% of all jobs in town were tied to Real Estate. When people ask me what Phoenicians do to earn a living I tell 'em that they buy and sell houses from each other.
So what happens when that stops?
We'll soon find out.
Here's an essay on this phenomena in San Diego. Ahh, what a house of cards we have built ourselves..
But San Diego's economy is still overly dependent on a single, vulnerable industry. It's just no longer aerospace or defense.
It is the real estate industry itself.
Forty percent of all new jobs in the past 3 years were in either real estate or construction. This calculation doesn't even include the explosive mortgage industry, which unfortunately can't be isolated in the available BLS data, but which might push the real estate-related share of recent jobs up to as much as 50 percent
Given the decline in real incomes, how are people paying for their new BMWs and Fashion Valley spending jags?
The answer is that the money came from people's homes
There are 115,000 San Diegans employed in the real estate and construction industries, almost 26,000 of whom entered the industry since 2000, in addition to untold thousands in the mortgage business.
How many jobs are at risk should home sales volume continue to decline?
January 27, 2006
Posted by blogger at 1/27/2006