There are significant forces at play.
Our Investment Philosophy
The most successful economic development attempts have been organic and responsive to the market. Attempts to create economic development counter to the prevailing market sentiment has historically not achieved its objectives. Therein, we use market guidance to tell us where to invest in an economy. We have jumped into the market because 3 prevailing phenomenon have all pointed towards one reality.
We need Housing Supply
The US is short 4.5M units. However, our commitment to market guidance necessitates that we study market and demand forces closely to make sure we build the right housing for the right customer in the right markets. Building housing has historically been one of the most effective way to create steady economic development including required blue-collar jobs. However, economic development needs effective leadership, steady guidance, supervision, and a promise to future generations. Limited housing supply creates cost pressures on local residents, limits economic opportunity, and restricts quality of life for all residents.
We expect certain areas to feel more housing pressure—creating more demand for housing—and more opportunity.
Quality of Life Replaces Quality of Work
Certain areas are blessed with natural beauty. These areas create higher quality of life. However, without investments in the housing stock, these areas will not be able to sustain high quality of life. In fact, some of the fastest growing areas in the nation are in the Mountain West.
We expect many of these Mountain West markets to continue to grow and for new ones to be introduced, with lucrative returns.
Community over Opportunity
Perhaps most importantly, we still expect the West Coast Urban Centers to be the Center of Capital, but we do not expect them to be the Centers of Community. As our white collar jobs become even more transient, it will drive demand for places that can provide the highest quality of life. Rural America has not had a more viable path to sustain their economies in decades.
We expect employers and employees to battle over “Return to Work” policies, but in the long run, we expect employees to win this battle, creating demand in areas that can provide a high quality of life and a strong sense of community.