I figure it will initially effect rents/vacancy and then eventually cool off the investor demand. I figure home prices will be a bright spot for a while as we enter a recession. Housing will likely follow the recession rather than lead it this time around.[/quote]
I watched the video. A large portion of the DOD jobs and Port Authority jobs in SD which are funded with Federal money are occupied by persons who can retire today with a pension. I’m going to go out on a limb and say these workers will be asked to retire or perhaps be given small incentives to do so before October 1 (when the Federal govm’t’s new fiscal year begins). The affected departments just won’t fill those positions left vacant by the new retirees.
Those new DOD and Port Authority retirees will be a “zero sum game.” They will start collecting their pensions in their SD County homes which they have owned for many years and life will go on.
If any of the ($46B??) in military cutbacks has to do with weaponry and the active-duty members who operate it, the affected servicemembers with 15 years in service will be transferred or offered an “early out” incentive with educational benefits thrown in, and of course, paid relocation to a new duty stn, back home or to the US locale of their choice.
These active-duty members and their families will simply move from Navy-owned housing (or a local rental) to another county or state at the Navy’s expense.
I just don’t see the results of a “Federal sequester” having any effect whatsoever on the housing market in SD.
