What factors will affect property values in the Southwest?
Though we believe that the Southwest is going to see some brutal heatwaves, we are not suggesting that heatwaves will sink property values. Places like Phoenix and Las Vegas have strong economies, and the strength of those economies will be the most important factor in how real estate performs over the next few decades. If Las Vegas can contine to grow its gaming industry, demand for homes will remain high. Meanwhile, Phoenix has a diverse, pro-business economy which has fueled fantastic growth. El Paso’s proximity to Mexico has been a tremendous economic advantage. The fact that people may have to run their air conditioning during the summer in these places is not likely to cause a mass migration.
