
According to the U.S. Census Bureau, the U.S. population reached a landmark 300 million sometime around 7:46 am Eastern time on October 18th (2006). Amongst so-called industrialized nations, the U.S. is a bit the anomaly, still recording significant population growth. The U.S. Census Bureau claims that an American is born every 7 seconds, one dies every 13 seconds, and the nation gains an immigrant from abroad every 31 seconds.
How does this seldom-checked growth relate to the housing market? Here's some additional numbers from the U.S. Census Bureau:

In 1915, when the U.S. population hit 100 million, the home-ownership rate was 45.9%, and the average price of a
new home was $3,200. In 1967, when the U.S. population reached 200 million, homeownership had increased to 63.6%, whilst the average new house cost $24,600. In 2006, home ownership is higher yet again at 68.9% (though perhaps because of the significant recent appreciation in urban markets, the rate is in slight decline since 2003). The average cost of new-home in 2006? $290,600! That's a percentage change (since 1915) of 8,981! Real inflation, my backside!
(The home ownership rate is computed by dividing the number of owner-occupant housing units by the number of occupied housing units or households.)

Thank goodness consumers aren't limited only to new homes. Still, one wonders why ("affordable") housing advocates hesitate to rope population growth into the dialogue. (Am I "wondering", or am I asking?)
On that note, consider five metro markets that lost value in the 2005 boom year. (Statistics given are from 2005 year-ending.)
Buffalo-Niagara Falls: median home price $99K, percentage change -0.7%
Cleveland-Elyria-Mentor: median home price $138.9K, percentage change -5.2%
Detroit-Warren-Livonia: median home price $134.5K, percentage change -8.0%
Rockford: median home price: $128.7K, percentage change -5.1%
Youngstown-Warren-Boardman: $85.6K, percentage change -5.5%
Guess what all five metro areas have in common? They all lost population.
Labels: Real Estate Rants