Southern California, 2016
We likely won't recognize the world 10 years from now. Watching the real estate market everyday and by pulling research from many different sources, one can find a picture a world in San Diego, California and the United States much different than the world we live in today. Let's take a walk through World 2016.
Cities that continue to show high job growth will look more urbanized. More people will inhabit the progressively more urbanized cities sprinkled with new high-rise condo projects. Nowhere is that more true than in home San Diego where builders continue to build high rise condominiums, and infill projects add density to where older run-down homes once stood. Southern California will have more projects like these to house the 4 million more people that the U.S Census Bureau says will be here in 10 years. California as a whole will add 6 million while the United States' population will have 29 million more people. San Diego has California's third highest number of people per square mile and will move up to grow more dense.
Besides Southern California having more high rises, transit villages located around mass transit stops like the Trolley's Blue Line and the Orange line will become more popular. City planners say they give fast track approval to any mixed use development that combines commercial, retail and residential uses to get more cars off the road. We will need these projects because California is adding a 1000 cars a day, a growth rate that cannot be sustained (I hope).
Urban sprawl will cause “megapolises” to form along this nation's interstate road system. Seattle-Vancouver, Los Angeles-Las Vegas, Miami-Atlanta-Chattanooga is just some of the highway strips where these faster growing areas will be located. More people will drive further to work than ever before.
Stressed out commuters owning homes in outlying areas farther from the traditional urbanized work centers will increasingly work from home. The Small Business administration estimates that the 20 million Americans that work from home will double by 2016. Working from home will become a more common phenomenon as more American workers are downsized and start their own business. Companies will become more lenient and give incentives to keep their workers off traffic-clogged freeways.
The cars we drive will be smaller, cleaner and more fuel efficient. General Motors just announced that by 2008 it would lay off 30,000 workers and shutter 8 plants involved in the production of its slow selling gas guzzling SUVs and pick up trucks. GM will shortly lose its status as the world's largest automaker as more Americans choose gas friendly Nissans and Hondas.
We will not run out of oil-not for a long time. Petroleum and all of its associated uses- electricity, heat, plastics, fertilizers, and synthetic rubbers will cost us more in 2016-maybe a lot more. In the last 10 years the price of oil has more than doubled-it will double again and make oil shale and other hard to get to reserves commercially feasible again. Development of alternate energy technologies will be the next hot growth industry and the Research and Development money will go to the already tech-savvy areas where the highly educated talent lives-Southern California, San Francisco's Bay Area, Austin, Boston and Raleigh-Durham's Research Triangle.
Internet based information will flow faster over high capacity fiber optic lines. Businesses in industries not yet conceived of will spring up and companies that can quickly grow and contract with the fast-changing economic climates will survive. Cities solely reliant on one major industry will face challenges as Southern California did in the mid 1990's when over 100,000 defense contractor workers were laid off in 2 years. This likely will prove Southern California's economy to be remarkably resilient by 2016 and well poised to receive the changes the next decade will bring.
Stay tuned for more from Steve Dexter.
Steve Dexter
949-494-1676
Call Steve for great loan programs- interest only loans, 100% purchase, no PMI, 5% down investor loans, 100% cash out refies and many more!
Cities that continue to show high job growth will look more urbanized. More people will inhabit the progressively more urbanized cities sprinkled with new high-rise condo projects. Nowhere is that more true than in home San Diego where builders continue to build high rise condominiums, and infill projects add density to where older run-down homes once stood. Southern California will have more projects like these to house the 4 million more people that the U.S Census Bureau says will be here in 10 years. California as a whole will add 6 million while the United States' population will have 29 million more people. San Diego has California's third highest number of people per square mile and will move up to grow more dense.
Besides Southern California having more high rises, transit villages located around mass transit stops like the Trolley's Blue Line and the Orange line will become more popular. City planners say they give fast track approval to any mixed use development that combines commercial, retail and residential uses to get more cars off the road. We will need these projects because California is adding a 1000 cars a day, a growth rate that cannot be sustained (I hope).
Urban sprawl will cause “megapolises” to form along this nation's interstate road system. Seattle-Vancouver, Los Angeles-Las Vegas, Miami-Atlanta-Chattanooga is just some of the highway strips where these faster growing areas will be located. More people will drive further to work than ever before.
Stressed out commuters owning homes in outlying areas farther from the traditional urbanized work centers will increasingly work from home. The Small Business administration estimates that the 20 million Americans that work from home will double by 2016. Working from home will become a more common phenomenon as more American workers are downsized and start their own business. Companies will become more lenient and give incentives to keep their workers off traffic-clogged freeways.
The cars we drive will be smaller, cleaner and more fuel efficient. General Motors just announced that by 2008 it would lay off 30,000 workers and shutter 8 plants involved in the production of its slow selling gas guzzling SUVs and pick up trucks. GM will shortly lose its status as the world's largest automaker as more Americans choose gas friendly Nissans and Hondas.
We will not run out of oil-not for a long time. Petroleum and all of its associated uses- electricity, heat, plastics, fertilizers, and synthetic rubbers will cost us more in 2016-maybe a lot more. In the last 10 years the price of oil has more than doubled-it will double again and make oil shale and other hard to get to reserves commercially feasible again. Development of alternate energy technologies will be the next hot growth industry and the Research and Development money will go to the already tech-savvy areas where the highly educated talent lives-Southern California, San Francisco's Bay Area, Austin, Boston and Raleigh-Durham's Research Triangle.
Internet based information will flow faster over high capacity fiber optic lines. Businesses in industries not yet conceived of will spring up and companies that can quickly grow and contract with the fast-changing economic climates will survive. Cities solely reliant on one major industry will face challenges as Southern California did in the mid 1990's when over 100,000 defense contractor workers were laid off in 2 years. This likely will prove Southern California's economy to be remarkably resilient by 2016 and well poised to receive the changes the next decade will bring.
Stay tuned for more from Steve Dexter.
Steve Dexter
949-494-1676
Call Steve for great loan programs- interest only loans, 100% purchase, no PMI, 5% down investor loans, 100% cash out refies and many more!
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