"The post-recession reality is that the customer base for businesses that appeal to the middle class is shrinking as the top tier pulls even further away.
So says The New York Times in yesterday's Business Day article: "The Middle Class Is Steadily Eroding. Just Ask the Business World."
In a nutshell: Income inequality is deepening. Affluent consumers are spending more and driving the economic engine. From restaurants to retail, appliances to casinos, the "high-end" is where the action is and it is largely driving what growth there is in the economy.
"The current recovery has been driven almost entirely by the upper crust...about 90 percent of the overall increase in inflation-adjusted consumption between 2009 and 2012 was generated by the top 20 percent of households in terms of income."
Throughout the downturn, the luxury segment was the "good news" story in real estate and in most markets, it continues to be the dominant segment driving the post-recession recovery.
While growing income inequality is most surely an unwelcome reality for this country, savvy agents are positioning themselves to capitalize on these trends and effectively serve the most active and profitable segments of the market, which in many places, continues to be luxury.
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