Joe Cavaluzziis a contributor to Real Estate New Jersey, fromwhich this article was excerpted.

New Jersey's economy and the political concerns of its realestate industry are inexorably linked. That may be why so many inthe industry cringed when they read Allied Van Lines' annualmigration survey that found New Jersey, at 60.9%, third only toMichigan and North Dakota in the percentage of moves that wereoutbound.

The state faces a number of challenges to restore its reputationas a good choice to locate a business and to stem the movement ofgood jobs to less expensive areas of the country that havedeveloped their own strong skilled labor pools. While some ofproblems seem outside the reach of government--the nation-leadinghousing costs, for instance--the state legislature will beaddressing a number of complicated issues that impact the cost ofdoing business here.