Do you live in an area that is booming? Life in a boomtown is super-exciting. The energy of growth and optimism is exciting, contagious and palpable. Almost everyone feels it. Opportunity abounds. Building cranes dot the skyline. Headlines blast the news everywhere. Real estate booms too and makes headlines.

Yes, an area that is booming is very exciting indeed, especially if you own a home or other real estate and/or a business. All benefit by this tremendously. The list of benefits is impressive and fuels economic growth and attracts people from around the country and the world. Not unlike all things in life, there are pro's and con's. Yes, there are some downsides to being in a boomtown, especially one that has not had enough time or resources to grow and adjust its infrastructure to this hyper-growth:  more traffic, congestion, pollution, slower response times, etc. Not enough schools, police, roads, hospital beds, daycare, social services, shops, utilities, staffing, the list goes on. Most are 'good' problems.

But there are bigger challenges that arise too.  Locals who do not own their homes feel the pinch first as demand and rents rise. Fast. Some are forced out of their homes and have to move out of the area altogether. Some of the smaller retailers that give an area its 'vibe' succumb to bigger, richer retailers. The cost for everything rises, fueled further by those moving into the area used to paying higher prices and/or wealthier with higher wages and/or net worth. Boomtowns often experience high inflation which can impact the rest of the country.

Many Boomtowns that have experienced rapid growth can also suffer from irrational exuberance, the thinking that double digit growth will continue unabated, forever. This is usually followed by stalling and decline. We have seen over time how over-building can sometimes cause massive price corrections and layoffs. Retailers reliant on peak spending and high rents shutter when things slow down. When the thrill of more spending power via lower taxes is eroded by higher prices fueled by local inflation, anger can set in. The 'locals' deprived of their automatic place in the best schools, hospitals, etc combined with shifting political ideologies can fuel friction too.

Viewed over more extended periods, not the 24/7 news cycle , all these things correct over time, yet some corrections are slower and more painful than others. Timing is everything, almost always. Patience can serve you well through those correcting moments.