IT and Retirement divorce demand from jobs

[timgoodlet]

A couple of factors that can affect real estate and distort the zones model.

1. The internet with VPN technology and tele-conferencing / video conferencing allows people to work remotely. So some people are moving away from the cities to cheaper (or more likely nicer) locations but still keeping good jobs and they are not overly affected by oil prices.

2. An aging population means more people are taking a sea change and moving to their rural or coastal holiday house for good, as a retirement. This will further support prices in the nicer areas rather than the places near the jobs.

In conclusion, the three circles in the diagram oversimplify what is a very complex demographic and economic puzzle. All ships will fall on the out-going tide but some will go down futher.

Tim

[blazespinnaker]

Absolutely!

I just sold my rural house to a retirement couple from the city. I had moved out here because of access to high speed internet.

[jeffolie]

Rich retiring baby boomers want trophies to enjoy the remainder of their immediate gradification lives. They get trophy wives, cars and houses. The trophy houses are either McMansions or waterview condos.

The not rich want to stay in the housing that they already have - 60%.

[saints1]

You make the point that "The internet with VPN technology and tele-conferencing / video conferencing allows people to work remotely". The downside of this for Western workers in industries like IT, back office jobs, call centres etc is it allows firms to relocate jobs to countries such as India, China etc. This may lead to a workers redundancy but at the very least is going to reduce the future earnings growth a worker is likely to receive as they compete against staff who are paid a lot less. Out sourcing in all it's forms seems to be driven by a desire to save money and maximise profit, not a bad thing in its self but not without a human cost. The outsourcing of jobs to India, China etc is good news for workers in those countries but has the effect of depressing wages in the West.