Sep 28, 2008 10:31 pm US/Central
University Park Could Feel Economic Pinch Hardest
UNIVERSITY PARK (CBS 11 / TXA 21) ―
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Consumer, money, graphic
AP
The median income in University Park is 110-thousand dollars. Despite that, the residents here could still feel an economic crunch. Business Week magazine said it was in the top 10 of smaller cities that could get hit the hardest.
It is a city known for tree-lined streets and beautiful homes.
But, University Park is also home to thousands of real estate and finance professionals.
SMU Economics Professor Mike Davis says the city has a lot to lose in the down economy. "We've got a lot of important, big corporations in dallas. They have to raise and invest money. There's a big financial sector here."
According to the magazine, about 19 percent of University Park's 25-thousand residents work in the fields that could feel the most impact.
University Park resident Natalie Dodge says some of her friends and acquaintances are worried about the housing market and their portfolios. "I would think since we have a lot of people who work in finance, real estate and banking that we would get hit pretty hard. I have friends who are definitely worried about their stocks and savings. A lot of people my age have parents who are retiring soon. And they're worried that won't be available to them."
Some, like business owner Mike Martin, were surprised by the ranking." I would assume that all the smart people that live here would find something productive to do, irrespective of a drop in a particular area."
Economic experts say University Park, and many other North Texas communities, are still more resilient than other parts of the country.
"Unlike New York, we haven't seen the big bubble, the big rise in housing prices" says Davis.
With congress getting closer to approving a bailout package, he says it could restore cosumer confidence.
"It is really a psychological problem with the credit markets. This could be beneficial to those in finance who best learn how to adapt to the changes in their profession."
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