Labor migration has long been the necessary life-blood of economic and population rebalancing.
As student debt has soared in recent years, and shelter costs in many areas moved firmly into the unaffordable zone, young people have wisely begun moving to areas where they can afford to have a roof over their head. This enables them to start households and short-cut the many years of debt servitude needed to repay jumbo mortgages and rents. In the process, they are able to live and save and have families, while also revitalizing new areas and helping to spread prosperity and increased productivity.
Some are working from home and some are commuting. In other cases, employers are getting the memo and relocating to areas where their staff can afford to live.
Proof yet again, that the solution for too-high-prices is too-high-prices, where eventually less demand in expensive areas leads to more affordable prices there as well. All good news, except perhaps, for owners and landlords hoping to extract top dollar on properties in unaffordable markets over the next few years. See Why millennials are flocking to Rust Belt real estate:
They're investing in homes in such states as Ohio, Michigan and Wisconsin, experts say, in search of more affordable living and new places to plant down roots.
… "Millennials are swiping up properties for next-to-nothing prices near downtown city areas that have completely revitalized," Boomsma said. LeadingRE member Haring Realty has listed a three-bedroom Victorian home in Mansfield, Ohio, with an asking price of $39,900.
…"There is a community-mindedness with millennials that attracts them to the smaller Rust Belt towns," said Peter Haring, president of Haring Realty in Mansfield, Ohio.
"We are seeing an intense interest in participating in the revitalization of our towns and being a part of the community. It's palpable, and it's exciting," he added.
Disclosure: No positions