Thursday, October 12th, 2017 October12th2017

What is the Sun Belt?

Published on October 12th, 2017

Many folks in the Midwest don’t know what the “Sun Belt” is and that’s not a good sign.  Let’s fix that now.

The Sun Belt is a region generally considered to be the southern most 1/3 of the United States, stretching from the Southwest to the Southeast.

The region is noted for its mild winter, frequent sunny skies, growing economic opportunities and fewer unions.

Most importantly, the Sun Belt is the fastest growing region in the United States. And where there is growth…real estate investors will follow.

I always tell our clients that a growing area (region, state, city, neighborhood) will cover up a lot of other mistakes an investor makes. That isn’t to say that you can’t make money in areas that aren’t growing. You certainly can. But you’re going to need most things to go right for you.  Within growing areas you can usually have some things go wrong and still exit the property for a profit.

Anyone that’s worked with us before knows that when we prepare to list a property for sale we first define who our likely buyer is.

That means understanding which businesses and investors are in the market. In the Midwest, with few exceptions, we can eliminate institutional investors from our list because they aren’t interested in the Midwest markets. They are going all in on the Sun Belt. Why?

  • The Sun Belt has seen substantial population growth since the 1960’s from an influx of people seeking a warm and sunny climate, a surge in retiring baby boomers and growing economic opportunities.
  • The advent of air conditioning created more comfortable summer conditions and allowed more manufacturing and industry to locate there.
  • Since much of the construction in the Sun Belt is new or recent, housing styles are often modern and open.
  • Recreational opportunities in the Sun Belt are often not tied strictly to one season.  Many tourist and resort cities such as Miami, Los Angeles, Las Vegas, Tampa, Orlando, Myrtle Beach, Tucson, and Palm Springs support a tourist industry all year.
  • In the 1970’s, economic and political prominence shifted from the Midwest and Northeast to the South and West.
  • Migration of workers from Mexico and a boom in the agriculture industry allowed the area to grow economically.
  • The climate spurred the migration of many retirees to retirement communities in the region, especially in Florida and Arizona.
  • Industries such as aerospace, defense, and oil boomed in the Sun Belt as companies took advantage of the low involvement of labor unions in the region.  Also nearby military installations were major consumers of their products.
  • More recently, high tech and new economy industries have been major drivers of growth.

In 2005, the U.S. Census Bureau projected that approximately 88% of the nation’s population growth between 2000 and 2030 would occur in the Sun Belt.  Wow!

And that’s why the big money is betting on the Sun Belt. If you had $10,000,000 to invest and could pick any city nationwide, where would you choose?  Would you choose the city you live in?


About Beau Beach, CCIM

Beau is a leading Investment Real Estate Broker, Forbes Magazine contributor, author, investor and adoring father of four. His clients appreciate his no-nonsense demeanor and his legendary work ethic.

He’s the author of the books The 3 Reasons: Why Most Commercial Properties Don’t Sell and True Wealth: What Every Seller Should Know About 1031 Exchanges.

Beau leads Prowess Investment Real Estate Services which specializes in selling investment real estate for the absolute highest price the market will pay in Wisconsin, Florida and Illinois.

Considering selling? Request a free Sell For More Listing Plan to get the step-by-step blueprint to sell your property for the absolute highest price the market will pay. Request yours now at www.SellforMorePlan.com.

Beau can be reached at 414-324-4938, 561-425-9935 or Beau@ProwessIRES.com