With many major companies in the U.S. relocating from small towns to major markets, should small-town homeowners worry about home values?
Looking at the current state of the U.S. real estate market, the conversation quickly turns to historically low inventories, increasing sale prices and not enough construction to meet demand.
But that’s not the whole story. Outside major metropolitan areas, when a large employer closes down or relocates to a big city, it tends to leave collateral damage in its wake. Populations decline as residents move elsewhere for work, property values can drop as a result of the decrease in demand and other businesses suffer from a lack of customers.