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Housing Plays For The Coming Exodus Out Of Big Cities

Jun. 05, 2020 6:32 AM ETBZH, META, GOOG, GOOGL, HOFT, LGIH, TWTR, XHB, ZM76 Comments


  • The attractiveness of living in high-cost big cities has certainly lost some of its luster over the past few years.
  • First, we had the SALT caps of 2017 Tax Reform Act.  Recently, places like NYC have been hit hard by COVID-19 lockdowns as well as riots.
  • With employers getting much comfortable with a more 'virtual' work force, smaller cities and more rural single-family housing could benefit from the coming exodus from bigger cities.
  • We take a look at this potential emerging trend and offer up some investment picks that should be beneficiaries of this exodus in the paragraphs below.
  • I do much more than just articles at The Biotech Forum: Members get access to model portfolios, regular updates, a chat room, and more. Get started today »

"City life is millions of people being lonesome together." - Henry David Thoreau

The attractiveness of big cities has lost a lot of their luster in 2020. First, we had the COVID-19 outbreak that hit the large metro areas much, much harder than the small cities and more rural regions of the country with New York City being the epicenter for coronavirus deaths.

This led to nationwide lockdowns for several months across most of the nation which spread the misery countrywide, but specifically in high-density cities. Trust me, if you have ever had a 600-foot apartment in New York City being trapped inside for a few days because of inclement weather is not pleasant. I can't imagine what this is like to do for three months.

Then came the riots and looting over the past ten days across Minneapolis, Los Angeles, New York, Atlanta and other major metropolitan areas; of which frustration with the lockdowns had to play a part in my opinion. People thinking about leaving big cities at the beginning of this year, almost have to be leaning more and more in that direction now.

Another factor that should be a major enabler of such a move, is the recognition by employers during this pandemic that the technology exists to have a more 'virtual' workforce and there are many benefits to having one. This is one key reason Zoom Video (ZM) has been a big winner in 2020 for investors. Places like Twitter (TWTR), Alphabet (GOOG) (GOOGL), Facebook (FB) and others have come out and stated they envision a significantly larger amount of their work forces working offsite in the years ahead.

Source: FlexJobs

This was already a trend before COVID-19 as can be seen by the slide above that FlexJobs put out in mid-February of this year. The

Live Chat on The Biotech Forum has been dominated by discussion of buy-write opportunities over the past several months. To see what I and the other season biotech investors are targeting as trading ideas real-time, just join our community at The Biotech Forum by clicking HERE.

This article was written by

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Finding tomorrow's big winners in the lucrative biotech sector

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Analyst’s Disclosure: I am/we are long BZH, HOFT, LGIH. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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