Quote:
Originally Posted by EricS39
Yet market prices aren't higher down south?
In the south....
houses are bigger and cost less
more land,
lower prices on everything and Lower gas prices at the pump
More shopping centers
More space
Better year round weather
More population growth
So why would anyone not move south? What would make someone not move south within the US?
And why are northeast prices so high despite everything being astronomically better down south?
Take a barren northeast dreary January thru May with absolutely nothing to do but hibernate
Live in a tiny home and pay a fortune waiting patiently for a short summer season where everything is jacked up high as it gets because of peak season
Vs year round summer down south, live in gigantic home on golf course and year round access to beach down the street
Yet why are prices higher up north?
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In the South, property values are lower because there's a greater abundance of developable land on which to build relative to other areas of the country such as the Northeast and West Coast, where the ocean, more varied terrain, and/or the high density of highly urbanized environments greatly constricts the amount of land area that can be developed for residential purposes.
There are also fewer environmental restrictions and caps on land development in the South, so for the most part, there's a lot less bureaucracy to navigate through to build a home or development than in the Northeast or, say, California.
Furthermore, in the South, housing costs among other costs (e.g., gas, utilities, etc.) are lower than in the Northeast and other regions of the country because salaries and wages are accordingly lower. So if a middle-skill worker is earning $22-25/hour in the Northeast, he or she would probably be earning $12-15/hour in the same position in the South. Economies of scale.
Lower salaries/wages is one of the major reasons why more people don't pick up and leave the Northeast or other areas of the country and move to the South en masse like you suggest they should. A lot of high-skilled workers and white-collar professionals are turned off by the comparatively lower salaries because they're less competitive in the global market, especially for those just starting out.
If a young professional in particular were to launch his or her career in the South, that individual would have inherently less negotiating power with regard to his or her salary than a professional in the same industry with similar qualifications who launched their career in California, New York or Illinois.
Low and middle-skilled workers are largely turned off by the South because of the strong RTW laws that foster lower union participation rates and, in turn, diminish collective bargaining power. That's one of the reasons why salaries/wages are much lower and non-wage benefits (e.g., medical, dental, vision, profit-sharing, PTO, etc.) are less comprehensive in the South for both unionized AND nonunion employees.
Additionally, Southern states have fewer employment discrimination, workplace safety and other protective laws and regulations on the books compared to most Northern and Western states. This fosters a generally unwelcoming workplace environment for those who work in hazardous positions, especially in the manufacturing, trade and healthcare industries, as well as minority populations such as LGBT folks.
Also, stating that homes down South have "more land" is quite misleading, since a majority of people who live in the South, live in high-density suburban developments (AKA big tract houses situated on small lots where you could touch your neighbor's house if you reached out your window). This is especially common in Florida, Texas and Oklahoma and less of an issue in Georgia and the Carolinas, IME. In the Northeast, most neighborhoods are older in age, and in older neighborhoods, homes tend to sit on larger lots with more "elbow room." Developers clearly weren't as greedy back then and there was simply a lower demand for suburban housing.
Although times are changing, the South's economy, particularly with regard to the professional services sector, is still lackluster compared to the Northeast, Upper Midwest and West Coast. Cities with an abundance of well-compensated white-collar industry such as Atlanta, Dallas and Raleigh, for example, are the exception within the South, not the rule.
Fewer professional services jobs per capita is largely the result of historically lower educational attainment levels in the South compared to every other region of the country--save, perhaps, the Southwest--due a primarily agrarian economy until the mid-to-late 20th century, a higher proportion disadvantaged and disenfranchised individuals (e.g., African-Americans) and less overall spending on public K-12 and higher educational expenditures among other reasons.
Translation: The workforce in the South is less educated than in the Northeast. That's why corporations tend to locate their manufacturing plants and support centers in the South as opposed to their corporate operations. The lower cost of doing business is great for small businesses and entrepreneurial ventures, but small business pays very poorly, generally speaking.
Finally, "better weather" is highly subjective. Most of the South suffers disproportionately from disastrous storms such as hurricanes, tornadoes (see "Dixie Alley"), thunder and lightening storms, hailstorms and ice storms relative to many areas of the country. Summers are long and hot, and the humidity is quite intense, the latter of which creates a host of other related issues (e.g., pests, mold, mildew, etc.). That, plus aside from south and central Florida, winters in the South can be quite cold, icy and, to a lesser extent, snowy. So much for "year-round summer," LOL!
Oh, yeah--"year-round golf" and "beaches down the street" really only applies to Florida, as most Southern metro areas are pretty far removed from the beach and, again, have fairly cold winters, during which golf cannot be enjoyed. This is why Florida has more expensive real estate relative to most Southern states. However, Florida more than any other Southern state is a "catch 22," so to speak, because although real estate is more affordable overall than the Northeast, the COL is disproportionately high relative to salaries/wages, which are abysmally low. Northern prices, Southern wages. I lived in Florida for many years, so I ain't whistlin' Dixie, either.
You mention the South having better shopping centers than up North. Funny, because shopping seems to be popular pastime in many Southern metro areas due to the lousy weather and general lack of stimulating cultural amenities due to less refined interests among residents and outdoor recreational opportunities due to less varied terrain.
At the end of the day, you better like that big house you're living in down South because you're going to be spending a lot of time in it due to the lack of well-paying jobs, cultural amenities and outdoor recreational opportunities as well as the lousy weather.