Thanks everyone for bringing this one to my attention:
Lagging growth in N.J. tied to housing costs
by Robert Gebeloff
The high cost of housing is increasingly cutting into in New Jersey’s demographic bottom line.
With more and more residents leaving the state, and the rate of international immigration decreasing slightly, population growth has slowed to crawl, according to Census data released yesterday.
The Garden State grew by just 0.4 percent in 2005, according to population estimates, the second consecutive year of minuscule population growth. In the 1990s, New Jersey typically grew by a modest but steady 1 percent each year.
The slowdown was so stark that New Jersey nearly dropped off of the nation’s population Top 10 list.
While I’m not sure I agree with his hypothesis, the fact of the matter is NJ demographic growth has been anemic. There has been no new influx of buyers driving home prices upwards. Realtors and other media cheerleaders love to use population growth and housing shortage as a justification for high prices. The stratospheric jump in demand that drove prices upwards was not due to population growth or a shortage of housing, but from speculation and easy money. Realtors and media cheerleaders will continue to be unmasked for what they are in the upcoming months.