Published by FOX Business | March 8, 2022
A mass exodus is driving people from expensive cities and it’s causing people in other places to become priced-out.
Rent and home prices have seen major increases over the past year and in some places, they’ve hit record highs.
The rising cost of living has caused people in some cities to move out, simply because they can’t afford these increases.
Zillow economist Nicole Bachaud said people are moving from major cities in California, from New York City, and from Chicago into the sunbelt states for more affordable options. But this mass exodus from these places has started to drive rent up in what used to be more affordable cities.
“For longtime residents, this is bad news if one is a renter. It’s essentially pricing people out of the market.”
–Dr. Lawrence Yun, National Association of Realtors economist
Cities with the highest increases in rent prices include Phoenix, Miami, and Tampa, which have all seen an increase on average of over 25 percent in the past year.
“Rents are definitely growing at a rate that’s putting a lot of pressure for budgets for renters and causing people to get stuck in this affordability problem right now,” Bachaud said.
Home buying is also challenging in the current market, partly because there aren’t enough homes for sale at the moment, Bachaud said.
Over the past year, the Case-Shiller U.S. National Home Price index has risen by 18.6 percent, the strongest year-long growth in the history of the series.
