Proving that housing was actually the dominant variable in driving gaming demand was an important revelation. We posted “IT’S THE HOUSING, STUPID” on July 17th and the data has continued to confirm our thesis. At the time, employment levels were thought to be the number one driver but, statistically speaking, housing renders the employment variable to almost insignificant status. Brian McGough’s recent analysis in “STATE OF THE CONSUMER: HISTORY 101” provides more evidential back up and a terrific explanation of the wealth effect. It now seems so obvious why we all thought gaming wasn’t cyclical. The overall economy and employment levels have ebbed and flowed but housing prices have risen consistently since the mid 1990s.
So have gaming revenues. I’m looking at the chart and I’m not getting a peaceful, easy feeling.
So have gaming revenues. I’m looking at the chart and I’m not getting a peaceful, easy feeling.
