Pub 6 2021 Issue 2

10 www.ctaahq.org According to the New York Times, in July, there was a 44% increase in home sales for suburban counties surrounding New York City compared to 2019. In some areas, such as Westches- ter County, just north of New York City, there was a 112% increase. Meanwhile, the number of properties sold in Man- hattan decreased by 56% and rental prices dropped by 24%. Similarly, in San Francisco between May and August, United Van Lines moving company experienced a 23% increase in moving requests over the previous year. As more people left the city, rents were also impacted, with a 9% decrease in June and another 5% decrease in September, according to Zumper. Other less densely populated states such as Idaho, New Mex- ico and Delaware have seen an uptick in inbound migration. For instance, based on the Hire a Helper COVID Migration Report, Idaho saw 194% more people moving into the state than out. New Mexico saw 44% more people moving in ver- sus out, and Delaware saw a 30% increase of people moving into the state. While New York and San Francisco may have experienced the most dramatic changes, other cities saw less fluctua- tion. In fact, according to the Zillow 2020 Urban-Suburban Market Report, overall suburban housing markets have not strengthened at a disproportionately rapid pace compared to urban markets across the country. Reasons Behind Moving Back in July, roughly one-in-five Americans either had relo- cated due to the pandemic or knew of someone who did, ac- cording to a Pew Research Center Survey. Of those who had to move or knew of someone who moved, most were young adults in the 18-29 age range. When it comes to why people have moved, only 15% said they relocated because of COVID-19. However, out of those who reported a pandemic-related move, 37% said it was because they couldn’t afford current housing due to COVID-related loss of income, 33% said they moved to shelter in place with family and friends, and 24% stated they moved because they didn’t feel safe, according to the Hire a Helper COVID Mi- gration Report. While this report was able to capture some of the profession- ally managed moves within the United States, it’s suggested that there are probably more people who have moved during the pandemic, but those moves may only be temporary. Some residents have moved to second homes or rented their city apartments out, while many college students have moved back home due to courses going online. Future Forecast It’s still a little early to tell how the pandemic will impact resident migration in the long term, but based on the follow- ing data, and we can see some areas will probably be more affected than others. For New York and San Francisco, residents who have moved may choose to continue living in nearby suburbs after seeing the benefits of more space and a lower cost of living. Not to mention, many companies in these areas are offering em- ployees more flexibility. In some cases, permanent work from home options, after they’ve seen moving to a remote work- force, hasn’t impacted overall productivity. Igor Popov, Chief economist for Apartment List, believes suburbs surrounding popular metros like San Francisco and New York will thrive as a result, “I think we’re seeing some convergence across rental markets — the hottest cities are cooling off and new cities are heating up. Affordable mar- kets are seeing a boost in rental interest, especially if they are within large job centers’ driving distance. The new normal in 2021 and beyond may involve commuting to the office once or twice a week. In this case, smaller cities within 100 miles Continued from page 9 For New York and San Francisco, residents who have moved may choose to continue living in nearby suburbs after seeing the benefits of more space and a lower cost of living. Not to mention, many companies in these areas are offering employees more flexibility.