Why Does The Sunbelt Region Have Higher Unemployment? (real estate market, mortgages)
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The sunbelt was hit hard, as these areas have been the fastest growing over the past thirty years. During the rapid development phase this past decade, along with the creation of sub-prime loans, this combination led to a collapse of the real-estate market that affected the sunbelt worse than other regions. You see, easy money resulted in inflation and rapid increases in home prices. Some increased 400% over ten years, putting mortgages out of the reach for many families, to ensure that they can pay them off in a reasonable time, but these people were not denied the mortgages, so the eventually defaulted, leading to the economic crisis.
The other reason.
A greater non-white population, which typically is more prone to live off the government dole, relatively speaking.
*This isn't to say that even a significant minority of any group lives off welfare, only that the culture of some minority groups are less likely to discourage taking public assistance. Some live on it year to year, passing that mindset down generations.
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A few reasons:
- People are just packing and moving here WITHOUT a job lined up waiting for them on the other side
- Housing crash really hit places in the states of CA, AZ, FL, NV, GA, & LA
- The Global Economic Recession severly set the country back on job creation
- Sectors like banking (Charlotte) and other key sectors driving niche cities severely hurt a lot of areas
A greater non-white population, which typically is more prone to live off the government dole, relatively speaking.
Has nothing to do with current statistics. Plus this sector of the population isn't typically included in unemployment figures anyway.
Quote:
Originally Posted by DANNYY
A few reasons:
- People are just packing and moving here WITHOUT a job lined up waiting for them on the other side
- Housing crash really hit places in the states of CA, AZ, FL, NV, GA, & LA
- The Global Economic Recession severly set the country back on job creation
- Sectors like banking (Charlotte) and other key sectors driving niche cities severely hurt a lot of areas
There ya go (although I wouldn't include Louisiana).
A few reasons:
- People are just packing and moving here WITHOUT a job lined up waiting for them on the other side
- Housing crash really hit places in the states of CA, AZ, FL, NV, GA, & LA
- The Global Economic Recession severly set the country back on job creation
- Sectors like banking (Charlotte) and other key sectors driving niche cities severely hurt a lot of areas
Much of the sunbelt's economy was driven by sprawl development and population growth. Most of the jobs created where construction, service and government jobs. Many of these jobs are low paying and transient in nature. Once the housing and credit bubbles popped so did the sunbelt economy. No more cheap credit equals lesser demand for new homes and a decrease in retail and service demands. A small percent of sunbelt jobs were created by relocation of manufacturing and other established well paying industries. It is no surprise that the sunbelt has a high unemployment rate. It was built on a house of cards to begin with.
lol, people keep coming here without jobs adding to the list while lowering it where ever they came from
Actually people are moving at the lowest rate ever recorded by the census bureau. The bureau has been recording our mobility rate since 1948 and 2009 comes in dead last when it comes to mobility. This is no surprise seeing how the job market sucks almost everywhere, with a few exceptions like North Dakota. I'm sure the real estate market, with the inability to sell homes, has an effect also.
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