Why did the real estate market bubble so high in SoCal, NV, and FL and not so high in TX, CO, IL?

1 Answer

Answer :

answer:Because FL and NV especially had a lot of investors buying property. No one was living in a lot of the places, they were second homes and homes purchased to flip or rent. So, what that means is those states were very overbuilt, and when the market started to go down, the econmy and the real estate market, there was a glut of housing for sale, but no buyers. Laws of suppy and demand, suppy was huge, and demand became very low, because don’t need to buy investments or second homes. The reason FL and I assume NV, had all of those interested parties in buying there is it is a vacation, fun place to be. Not only American from northern states were buying in FL, but Europeans and Latin Americans also. Let alone Floridians who saw investment opportunity. SoCal I know less about. The prices were extremely inflated there, probably because of the jobs paying so much money to a portion of the population. Maybe they had people from Asia buying property? That I don’t know. I don’t know exactly how everything happened in that market though. Maybe they had a lot of job losses? Not sure.

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