Mostly, because they have common sense. But there are other factors, too.
North Dakota avoided the entire housing bubble and crash, he explained: “It is difficult for speculation to infect the North Dakota housing market as there are no supply constraints on home builders, who can quickly put up homes if there is any increase in housing demand and prices.”
It’s true there is plenty of open space; the first time my wife, a native of Hong Kong, visited North Dakota, she looked around with complete bafflement and asked why we weren’t doing anything with all that empty prairie. I once calculated that if North Dakota were to match the urban population density of Hong Kong, we would have room for eight billion people. We might even attract a few good Chinese restaurants. As it is, our population is about nine people per square mile; in New Jersey, it’s 1,171, including mobsters.
Another reason we skipped the housing bubble, Mr. Zandi said, is that “subprime lenders probably bypassed North Dakota as the mortgage market is too small to cover the costs of setting up a lending operation,” Mr. Zandi said. OK, maybe that was just our dumb luck. But Mr. Clayburgh added that in North Dakota both home buyers and banks tend to be conservative about mortgage loans.
So I was right after all: We are pretty sensible.
I have long maintained that we should invite the entire population of Israel to North Dakota – we’d solve the Middle East problem and, because of the huge boost to our economy of importing so many brilliant, hard-working people, wipe out our deficit problems at the same time.