The Greener Pasture - Migration Trends
In the past, I have covered the topic of Baby Boomers and how their home buying decisions and trends greatly affect the real estate market. Another noteworthy demographic group to take a look at is college graduates on the move. Lawrence Yun, Chief Economist of the National Association of Realtors, recently brought up some interesting points about this sector of the population.
As a whole, college graduates make more money and display a higher rate of homeownership than those without a college degree. And generally this group desires to settle in areas with a variety of cultural amenities and a growing economy. College graduates seem very comfortable with relocating to new areas. In fact, 45% of college graduates settle in new states within 5 years of graduation compared to 19% of those with a high school education. Even with the current state of the national economy, the areas that have seen stability and even growth are predominantly those where there is an above average population of college graduates.
So, what is an area to do to retain and attract this vibrant, talented populace? By and large the regions that can offer high job growth, lower unemployment, higher pay, lower housing costs, and better amenities are going to be the winners on drawing in these people who will in turn boost the economy by stimulating consumer purchasing and becoming first time homebuyers.
According to the Bureau of Labor Statistics, as of the end of July 2008, Montana ranked 9th nationally for the lowest unemployment with a rate of 4.0%. The rates ranged from 3.0% in South Dakota to 8.5% in Michigan with a national average of 5.7%. Further breakdown shows Gallatin County weighing in at 2.5% and neighboring Park County at 3.1%.
Bringing in start-up businesses and appealing to the entrepreneurial spirit of talented graduates is another way to make a community more attractive. One example of our local community realizing this fact is the existence of Prospera Business Network (formerly the Gallatin Development Corporation) since 1985. Pulling from their website, the private, non-profit, member-supported economic development organization is dedicated to encouraging and supporting business expansion, retention and relocation by providing access to business consulting, financing, professional development and economic research. Efforts like this make our area a viable choice for professional career development and for those looking to relocate in order to start their own businesses. Local government decisions effecting public infrastructure and the like can also enhance our area as a "place to be".
A final factor that we as a community can't control but is definitely in our favor is that an area with an abundance of recreational opportunities is often enough of a draw to enterprising individuals. Although "you can't eat the scenery" is commonly heard around here, often it is enough to keep innovative people in the area long enough for their ideas and careers to take hold and keep them here. In effect, continuing the cycle of Bozeman becoming a destination location.
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