People are Returning to Cities
by David Klemt
It seems the people fleeing big cities in a “mass exodus” are throwing their moving trucks and vans into reverse.
Millennials and Gen Z are apparently leaving the suburbs and rural areas.
Analysts are looking at significant increases in rent as proof of the shift.
Anyone following along with real estate is aware that the housing market is off-the-charts hot right now.
Bidding wars for houses and condos are driving prices up by tens of thousands of dollars in many cases.
Well, those bidding wars aren’t only affecting housing sales.
In some markets, rates for rental properties are climbing by more than 40 percent. Per reports, rent is up 7.5 percent across the nation.
Now, bidding wars are taking place for rental properties. As is the case with homes and condos, there’s less inventory than demand.
Obviously, that drives up prices.
Who and Where?
Millennials and Gen Z are driving the journey back to the cities.
Many in those generations moved out of cities to live with friends or family. During the pandemic, doing so was a sound in terms of physical, mental, and financial health.
According to data from ApartmentGuide.com, the following markets are seeing year-over-year increases in one- and two-bedroom apartment rent:
- Tucson, AZ
- Santa Ana, CA
- Henderson, NV
- Las Vegas, NV
For the full report, click here.
Another market is, per several outlets, seeing an influx in younger, wealthy renters and buyers: Phoenix, AZ.
In fact, the wealthy have been investing in property throughout Phoenix, Las Vegas, Denver and Dallas.
Of course, the nation’s biggest cities are also drawing more people. For example, New York City is experiencing an influx of residents.
This is largely due to the relaxing of Covid-19 restrictions and an increase—in some cities and states—in vaccination rates.
It’s important to meet guests where they are. Those looking to expand or open new venues should give serious consideration to booming secondary markets.