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With the nation’s armed forces engaged on multiple fronts across the globe, military bases in the U.S. serve as focal points for training and support services as well as “home sweet home” for military families, furloughed soldiers, returning servicemen and women as well as civilians. Military bases are often self-sufficient —with their own schools, supermarkets and movie theaters—which may lead to the assumption that they have been immune to the prolonged housing market slump.

“Military housing markets are definitely insulated but not immune to broader economic pressures,” says Charlie Young, president and CEO of ERA Real Estate. “We are seeing some interesting trends in military markets. There is a lot of activity, but we are seeing many buyers move into rental markets because they are underwater in their homes due to frequent moves or the market drops that have eroded home values across the country.”

Across the country, relocation activity is giving military markets a boost. For consumers looking to make a purchase, conditions are favorable for both primary residences as well as investment opportunities.

A spotlight on several ERA Real Estate brokerages serving military communities reveals distinct business drivers affecting their companies—not necessarily those affecting the market as a whole—such as base realignment and closure (BRAC) activities and steady relocation referrals. But also significant are the broader macro-economic pressures that are playing out across the entire industry including price declines, negative equity and tighter lending standards.

For more information, visit www.ERA.com.

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