Finances, ideal lifestyles, and the push and pull away from cities experienced by young adults

Looking back at residential patterns after the late 2000s economic crisis and the COVID-19 pandemic, what motivated younger adults to leave cities and move to suburban or rural communities?

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Later waves that arrived just after the Great Recession, however, had a different type of migrant identity. As luxury housing continued to be built in New York City and affordable areas disappeared, some residents found the big city “inhospitable to their desired urban lifestyle and identity”: “Many of today’s newcomers to Newburgh use the term ‘priced out’…though few actually left in direct response to their rents rising or their landlord pressuring them to move out,” Ocejo writes. “But cost still played an important role in their decision to relocate…. They felt displaced from their own potential and opportunities to thrive as middle-class urbanites living a specific city lifestyle in the metropolis.”

Herein lies the tension between getting “pushed” from a city versus “pulled.” Some contemporary migrants are pushed from a particular lifestyle and pulled by a promise that it can be built elsewhere. Unlike midcentury white flight—which was highly dependent on the construction of suburban housing, racism, and statecraft—middle-class millennials (especially those facing mounting city prices and remote work) find that smaller cities and towns cater to a broader vision for life, one that provides opportunities to buy a house, build a business, or comfortably raise a family…

“When people move from one community to another…they leave behind their old job, connections, identity, and seek out new ones. They force themselves to go meet their neighbors, or to show up at a new church on Sunday, despite the awkwardness,” Appelbaum writes. What this might mean for rural or metro areas is yet to be seen. But for people moving out of large cities, it’s redefining what upward mobility might look like. Building wealth through housing may be unattainable, but it’s being replaced by a search for a new American dream: self-actualization.

What I read in this description is an intertwining of financial matters and what lifestyle people see themselves having. Costs and resources matter; housing is a sizable portion of many budgets. Housing has become more expensive in many American metropolitan areas. But cultural narratives and individual aspirations also matter; what life does someone want to live? What do they see as a good life?

On this first factor, it helps to have more financial resources. The stories told in this article seem to involve people who had enough resources that they had options of where to live. They could make a major move, perhaps by selling a residence in one place to go to another. Or they had careers and job skills that enabled them to live in multiple places.

On this second factor, Americans have developed a lot of narratives over time about desirable lives. They want a single-family home in the suburbs. They want to be individuals who pursue their own path (the self-actualization suggested above). They want to engage community life. And so on.

Perhaps then it would be helpful to think about a two-pole line that demonstrates how people make decisions about where to live and what to pursue. On one side of the line is finances and what is possible in terms of money and resources. On the other side of the line is an image of the life they want to live and what that entails on a day-to-day and long-term basis. Depending on the current situation personally and in society, they might slide a marker more toward one pole than the other.

(Does this describe how young adults make these decisions or is this limited to a certain subset with particular resources and goals?)

Compelling evidence that wealthy New Yorkers are headed to the suburbs after election of a new mayor?

One article claims there is more evidence wealthy residents of New York City will move to the suburbs with the election of Zohran Mamdani:

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That urgency is showing up in the data. Pending home sales in Westchester are up roughly 15% from a year ago, while average showing activity has climbed more than 25% since midsummer, according to Compass agents Zach and Heather Harrison. “Concerns about higher taxes, safety, and a desire for more space are driving people to act quickly,” said Zach Harrison. “We’re seeing bidding wars well into the multimillion-dollar range.”

The rush has been so widespread that local agents have coined a term for it—the “Mamdani effect.” High-net-worth buyers from Manhattan and Brooklyn are placing offers sight unseen, often hundreds of thousands of dollars above asking, in a bid to outpace rivals. “It feels like the pandemic all over again, but with more urgency,” Heather Harrison said.

That sense of déjà vu is supported by market metrics. Nationwide, inventory has been growing for nearly two years, yet supply in affluent New York suburbs remains scarce. Realtor.com’s October Housing Report shows a 15.3% annual rise in active listings nationally, but that growth is tapering, with homes spending an average of 63 days on the market—five more than a year ago. In contrast, suburban markets ringing New York City are accelerating, defying the national slowdown…

Luxury enclaves like Greenwich, Conn., are seeing similar dynamics. Mark Pruner of Compass said inventory there is down more than 80% from 2019, leaving just 2.7 months of supply overall. “Contracts have surged in the past five weeks,” Pruner said, noting several listings that sold within days, including a $2.4 million home that fetched $2.96 million. “This is the strongest top-end market we’ve seen in years.”

I still have multiple questions, even with more evidence in this story than a previous one I wrote about:

  1. Would this come with a corresponding number of sales in New York City or will the new suburban purchases become the primary residence and the city properties can remain as investments?
  2. Who exactly are these people engaging in this real estate activity? Is it the over 100 billionaires who live in New York City? Is it the upper middle class? Are they people in particular industries or households or kids?
  3. What alternative factors could explain this increase in suburban real estate activity? The recent rise in the stock market?
  4. While there are consequences of people moving out of cities to the suburbs, the suggestion in the article is that they are staying in the region. How important is this in the long run – suburban residents still connected to city organizations and activity – compared to residents leaving the region all together?
  5. With political sorting and polarization in recent decades, there are regularly suggestions that people will make significant moves to be in places that are more amendable to their own political views. Is this particular example simply something we should now expect if cities or regions change politically?

Argument: “The sharp decline in geographic mobility is the single most important social change of the past half century”

People in the United States move less than they used to. One writer describes the consequences:

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But over the past 50 years, this engine of American opportunity has stopped working. Americans have become less likely to move from one state to another, or to move within a state, or even to switch residences within a city. In the 1960s, about one out of every five Americans moved in any given year—down from one in three in the 19th century, but a frenetic rate nonetheless. In 2023, however, only one in 13 Americans moved.

The sharp decline in geographic mobility is the single most important social change of the past half century, although other shifts have attracted far more attention. In that same span, fewer Americans have started new businesses, and fewer Americans have switched jobs—from 1985 to 2014, the share of people who became entrepreneurs fell by half. More Americans are ending up worse off than their parents—in 1970, about eight out of every 10 young adults could expect to earn more than their parents; by the turn of the century, that was true of only half of young adults. Church membership is down by about a third since 1970, as is the share of Americans who socialize several times a week. Membership in any kind of group is down by half. The birth rate keeps falling. And although half of Americans used to think most people could be trusted, today only a third think the same…

As a result, many Americans are stranded in communities with flat or declining prospects, and lack the practical ability to move across the tracks, the state, or the country—to choose where they want to live. Those who do move are typically heading not to the places where opportunities are abundant, but to those where housing is cheap. Only the affluent and well educated are exempt from this situation; the freedom to choose one’s city or community has become a privilege of class.

A possible solution?

These three principles—consistency, tolerance, and abundance—can help restore American mobility. Federal guidelines can make the environment more amenable, but the solutions by and large cannot come from central planning; states and cities and towns will need to reform their rules and processes to allow the housing supply to grow where people want to build. The goal of policy makers, in any case, shouldn’t be to move Americans to any particular place, or to any particular style of living. They should instead aim to make it easier for Americans to move wherever they would like—to make it equally easy to build wherever Americans’ hopes and desires alight.

We will likely never be at a point where everyone will move to pursue certain opportunities – see an earlier post here – but this trend over time does go against earlier patterns. If more people were able to move, they might then be able to take advantage of housing or job opportunities.

One thing I have not seen in articles that highlight this: do more people want to move but can’t (which could be linked to social class)? Take some patterns from recent years. If more employers allowed work from home, would this free up people to move? If people perceive there to be more opportunities in the Sun Belt, how many move there (hence growing populations in recent decades) versus those who cannot?

Or, what if more people are used to not moving now and would stay put even if there were opportunities elsewhere? The era of mass mobility may be over and new generations are less used moving. Perhaps they want to stay closer to family or like staying rooted in one place.

Maybe the hyper mobility of Americans in the 19th and part of the 20th centuries was abnormal. Before then, opportunities were more restricted and people had stronger ties to families and communities. Why should humans move so frequently?

Looking forward, does easy access to social media and the Internet make it even easier to not move? People can access the connections and opportunities they want from wherever they are, as long as they have a fast connection.

Those with the right jobs and resources can move where they want in the United States

In a story about people leaving Texas (even as the state gained population last year), I was struck by the patterns in the stories of people moving out the state: they could do so. Here is what I mean:

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While people have been moving into the Lone Star state to take advantage of its relatively affordable real-estate market, political atmosphere, and work opportunities, some of those same qualities are driving others out. Over 494,000 people left Texas between 2021 and 2022 (though the state gained a net population of 174,261.) It’s a trend that could intensify as housing costs surge and the state’s political landscape becomes more polarized

For Texans, “the Midwest has emerged as popular recently because it is just by and large the most affordable region,” Hannah Jones, Realtor.com’s economic research analyst, told Business Insider in October. “We’re seeing this trend of buyers looking for affordability really explode.”…

In Austin, some tech workers who flocked to the city during the pandemic just can’t seem to get out fast enough

Jules Rogers, a reporter who relocated from Portland, Oregon, to Houston in 2018 for a position at a local newspaper, left Texas less than two years after moving to the city…

Theoretically, Americans can move wherever they like. In reality, the ability to move is constrained by a variety of factors, including financial resources and jobs.

In this story, people can move in and out of Texas relatively easily. Some came in recent years and want to move back out. Others are leaving Texas for cheaper housing elsewhere.

This may be possible for some. But, it is not easy for everyone to do this. Americans do not just move to places where housing is cheaper. People have numerous reasons for locating in certain places and not others. Those with resources and particular jobs that are in demand or available in many places have some flexibility that others may not have. White-collar workers, in particular, may be able to more easily move from big metro region to big metro region (or even out of these regions as some did during COVID-19).

This would be hard data to collect but it would be interesting to compare people moving for different reasons and how long they stay. Do retirees who move to certain places stay longer than those who move for jobs or cheaper housing?

A large majority of American young adults live near where they grew up

Young adults in the United States often do not live far from home:

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In fact, analysis by the Census Bureau and Harvard University earlier this year found that 80% of young adults now live less than 100 miles from where they grew up.

This statistic could be parsed a few different ways. This includes

-This percentage would include the significant numbers that are living at home with family.

-One hundred miles is not a small distance. This would cover almost all of the largest metropolitan regions. This probably puts people within a two hour distance of home. It does mean that someone could live in a very different setting and still be close to home.

-What does this number mean in the long run? How does it compare to other years and eras? If Americans move less frequently, does that mean they also do not move as far? There is a narrative in the United States that people strike out on their own for new, usually economic, opportunities. Does this data fit that?

Americans who leave the country move all over the world

Here is some data on where Americans go when they leave the United States as well as some of the reasons they move:

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While the United States is the top destination for immigrants worldwide, hosting about three times as many immigrants as runners-up Germany and Saudi Arabia, it’s a paltry 26th in terms of sending immigrants abroad. Our analysis of U.N. data finds that just one American emigrates for every six Indians or four Mexicans.

And unlike emigrants from other countries, Americans go everywhere. We’re the most widely distributed people on the planet. No other nation has as few people concentrated in its top 10 (or top 25, or top 50) destinations, a Washington Post analysis shows.

In part, this wide distribution is probably a legacy of America’s immigrant roots. America is the top destination for migrants from about 40 countries, and many Americans remain linked to their ancestral homelands. It also reflects the wide reach of the U.S. military, as well as civilian organizations such as the Peace Corps and Christian missionaries…

Instead, Klekowski von Koppenfels’s research with Helen B. Marrow of Tufts University shows that a large majority of Americans want to move abroad to explore or have an adventure. Emigration almost always has more than one cause, they say, and some especially common ones are the desire to retire abroad, work abroad and get out of a bad situation at home. However, the desire to explore — “to lean forward to the next crazy venture beneath the skies,” as Kerouac wrote — is the American impulse that dominates.

The “nation of immigrants” is sort of a nation of emigrants? It would be interesting to compare these narratives.

Similarly, given the more limited geographic mobility within the United States in recent years plus the difficulty in collecting data on people who leave the United States, is it possible to compare trends over time on mobility within the country versus mobility abroad? Is one growing or slowing more than the other?

The steps to moving a house

Need to move a house? Here is one description of the process:

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First, engineers must assess if the house is structurally sound to move. Once that’s determined, Mr. Davis said, “then physically we come in and typically excavate around the house and clean the perimeter of the house.”

Following the excavation, the next step is to “jackhammer or cut holes in the foundation and slip a grid of steel under the house,” he added. “I have to design the length and weight of the steel to hold the structure without failure. I need to work out weight of structure before I start to position the jacking and lifting points and give my best estimation of what’s necessary to hold the house safely when it’s under my control.”

If the home isn’t undergoing renovations, it can be lifted or moved with household goods, including furniture in place, because that weight is a small fraction of the total weight, which can be many tons. (The furniture does not have to be secured, Mr. Davis said, but he does suggest taking pictures and mirrors down, along with other fragile items.)…

The home must also be disconnected from utilities before the relocation has begun; gas and sewer lines must be cut and capped as well. Once it’s in its new position, they are reconnected.

I have wondered how many houses have been moved in such a way as it would be very difficult to tell after the fact if a home had been moved to the spot.

Many people who have moved might love to hear that this method does not require moving household goods. You can just move your house instead! But, I imagine the cost plus the process – needing to find land, obtaining permits, etc. – make this an unrealistic way to avoid packing.

If the cost of house moving could be reduced, it would be interesting to consider mixing more houses in different locations. In the United States, many residential neighborhoods contain homes roughly constructed at the same time. But, if houses could be more easily moved, there could be more styles and sizes interspersed through residential areas.

Americans may move close to home to be near politically like-minded residents

How far are Americans willing to move to be in a political environment they are comfortable with? Fewer may move to other countries or other states compared to those who move within a county or region to find residents or communities with similar political views:

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“This idea of ‘red state versus blue state’ misses a great deal of heterogeneity within states, as well as clusters and spatial patterns that occur within states,” said Ryan Strickler, a political scientist at Colorado State University, Pueblo. “Instead, we’re seeing more of a micro level of political sorting.” …

[E]xperts say the more significant phenomenon is people moving within the same state where they can find others who are politically like-minded. These migrations aren’t about specific political outcomes like the Dobbs decision. Instead, they’re linked to social polarization. “There’s a lot of local reshuffling,” said Alexander Bendeck, a Ph.D. student in the Georgia Institute of Technology’s School of Interactive Computing.

In one of his current projects, Bendeck explores U.S. relocation patterns in the 2010s, using population migration data from the IRS to track the number of migrants between counties nationwide. Bendeck recognized the shift in migration from the coasts to the South or Midwest but also emphasized the effects of moving within metropolitan areas. Many natives of major Southern cities have moved out to the suburbs or to smaller cities. And the locals of those suburbs or cities move to more rural areas or even smaller cities.

But there’s a huge caveat to any migration data: It is impossible to attribute all instances of relocation, even within the same state, to politics. In fact, politics has not been a major factor why most Americans have moved in recent history, Strickler said. Instead, migration is more financially driven, whether people are seeking out a lower cost of living, better job prospects or proximity to family. 

I would be very interested in seeing more data on this micro-sorting within region. As noted in this piece, regions are often broken up this way: denser cities at the core vote more Democratic, far-flung suburbs vote more Republican, and in-between suburbs are more mixed. When people move within a region, how often do they end up in a community that aligns with their political sensibilities compared to their previous home?

One way to interpret this is that people are more tied to finances, jobs, and family within local places or geographies than to politics. Another way to put this is that Americans may express concerns about political trends, but they can often find more agreeable conditions not too far from where they currently live.

This highlights the importance of local government and politics even as there is a lot of attention paid to national politics. Even as state or national patterns may not be what individuals desire, they can rest assured that local communities or representatives share their positions. This could be related to the pattern where more Americans approve of their local Congressional representative than they approve of Congress as a whole.

The importance of the decision of where to raise a child

A data scientist argues that one of the most important parenting decisions is where to raise children:

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Something interesting happens when we compare the study on adoptions with this work on neighborhoods. We find that one factor about a home—its location—accounts for a significant fraction of the total effect of that home. In fact, putting together the different numbers, I have estimated that some 25 percent—and possibly more—of the overall effects of a parent are driven by where that parent raises their child. In other words, this one parenting decision has much more impact than many thousands of others.

Why is this decision so powerful? Chetty’s team has a possible answer for that. Three of the biggest predictors that a neighborhood will increase a child’s success are the percent of households in which there are two parents, the percent of residents who are college graduates, and the percent of residents who return their census forms. These are neighborhoods, in other words, with many role models: adults who are smart, accomplished, engaged in their community, and committed to stable family lives.

There is more evidence for just how powerful role models can be. A different study that Chetty co-authored found that girls who move to areas with lots of female patent holders in a specific field are far more likely to grow up to earn patents in that same field. And another study found that Black boys who grow up on blocks with many Black fathers around, even if that doesn’t include their own father, end up with much better life outcomes.

I will add this to my list of why it matters where people choose to live: it affects the life chances of kids.

Just having this data only goes so far. A few examples of where it gets trickier to figure out what to do with such information:

  1. How many parents would act on the information compared to other reasons for choosing where to live?
  2. How many parents could act on this information even if they wanted to?
  3. Are there enough neighborhoods in which children could benefit? Do the current residents of such neighborhoods want lots of people moving in?
  4. Are parents responsible for moving kids to such locations or are other actors responsible for helping kids live in these locations?

And so on. The implications of these findings could take decades to work out, particularly as Americans generally want to provide opportunities for their kids.

Data on whether Americans are moving due to politics

NPR reports on Americans moving to new locations because of politics. Here is some of the evidence presented:

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Residents have been fleeing states like California with high taxes, expensive real estate and school mask mandates and heading to conservative strongholds like Idaho, Tennessee and Texas.

More than one of every 10 people moving to Texas during the pandemic was from California, according to the Texas Real Estate Research Center at Texas A&M University. Most came from Southern California. Florida was the second biggest contributor of new Texans…

Political scientist Larry Sabato posted an analysis on Thursday that shows how America’s “super landslide” counties have grown over time.

Of the nation’s total 3,143 counties, the number of super landslide counties — where a presidential candidate won at least 80% of the vote — has jumped from 6% in 2004 to 22% in 2020…

Bishop’s book explains how Americans sorted themselves by politics, geography, lifestyle and economics over the preceding three decades. Sitting in a Central Texas café, Bishop says that trend has only intensified in the 14 years since the book’s publication.

I have read a lot of similar stories in recent years. All of this data, at face value, seems to make some sense: population flows from one set of states to another, the concentration of politically similar people in certain locations, and an ongoing sorting by politics.

At the same time, I am not completely convinced that it is politics driving moves. How often does a person, family, or business move solely because of politics or politics is the clear #1 reason? Politics might factor in an ultimate decision but I suspect jobs, retirement, and the locations of family are more often prime movers and/or large factors. Plus, the organization or sorting or residents has been going on for decades due to race/ethnicity (see the example of the suburbs) and social class (again, the suburbs). And could we consider how political patterns are related to race and class?

We can always find at least a few people who will describe moves undertaken to be closer to their political allies. I am not sure we are at the point where many are moving primarily or solely because of politics.