Manhattan is one famous part of the grand city that never sleeps, with beautiful homes, great local entertainment, tons of culture, and world-wide name recognition. Despite New York City’s reputation as a bustling and exciting city, a new study shows locals leaving the big apple in a big hurry. Soaring home prices are pushing people into new cities in search of more affordable accommodations. This great migration to better prices is happening throughout the country, with metropolitan cities seeing a major loss of resident locals fleeing to other, cheaper, parts of the country between July 2013 and July 2014. It looks like the people that can “make it” in New York City, are more interested in making more, elsewhere.
New York City ranked number two on the list of most populous metro areas in the United States that Americans are abandoning. It lost a net “163,000 U.S. residents, closely followed by a couple surrounding suburbs in Connecticut.” El Paso ranked number one on the list because, “a lot of young, reasonably educated people are having a hard time finding work there…they’re not staying in town after they graduate.” Instead, the El Paso exodus crowd has people moving to busier and more promising metro areas like Dallas and Austin, which have faster-growing economies and more job opportunities.
What complicates the data though is the fact that cities with high outflows of resident people are also seeing some of the highest net inflows of people coming from outside the United States. New York City may be losing its domestic residents in droves, but people from abroad are moving in to fill the vacant, low-skilled jobs, and are more willing to adopt “creative housing arrangements,” with multiple families in one apartment or home. Americans are simply not willing to adopt the multi-family living practices that are the norm in Europe and elsewhere. Additionally, growing demands for high-skilled workers in the technology industry bring foreigners with skills to the United States. These new workers are well compensated, and are able to afford high-cost areas. Washington D.C. has an abundance of people arriving from abroad to soak up tech jobs.
As the hunt for jobs and better home prices takes families, young graduates, and foreigners across the country in search of better options, a good financial plan can help you prepare to make any big changes. Speak with a financial advisor at Apex Financial today to get started on finding the best options for you, your family, and your personal wealth.