In an article by Conor Dougherty of the New York Times News Service about Reno, Nevada, the growth of Reno is a direct result of increases of house prices in California. Because of the growth of Silicon Valley prices of homes have increased in the San Francisco area and people are willing to commute longer. One commute is 4 hours north east to Reno, Nevada. Nevada depends on gambling and tourism and has traditionally had low taxes. People are at the stage in their lives and selling off homes in California and moving where homes are less expensive and the new owners have a nest egg to settle into their communities. What is good for a few is not so great for the many as more than 100,000 people from California have moved. Cities such as Reno have seen home prices increase and more importantly services in the community stretched.
Linking to dividend paying stocks, middle income people vote with their pocket books. This means if they can they will find an easy method to do something or move to different alternative. For most of them as a group, as long as the problems do not happen to them they feel they are okay. When it happens to them, they begin the process to move. Sometimes that is a good thing, sometimes it just means other problems where they move to. Due to have higher disposal income, companies pay attention to what middle income people do.
There are more questions than answers, till the next time – to raising questions.