Thousands of people left American cities in the first year of the pandemic when they realized they could live and work somewhere cheaper.
With remote work still going strong two years later, the migration out of urban centers has not stopped.
Major coastal cities have lost large numbers of their residents during the pandemic. Los Angeles experienced Migrate abroad the mostwith about 179,000 residents leaving between 2020 and 2021, according to the United States Census Bureau. New York lost about 113,000 residents to emigration during the same time period. And San Francisco’s annual growth rate is -6.3%, follow Brookings Institution.
Many people leave the city to dig more in the suburbs, what researchers at Realtor.com call “pandemic trends.” And a lot of people are continuing to rent in suburban areas when, in fact, it’s almost no less expensive to live there.
Follow a report released on Wednesday by Realtor.com property listings site.
In 2019, renters were able to find a place to live in the suburbs for an average of $1,404, according to the report. At the same time, the city’s median rent is $1,579 — a difference of 12.4%. The median rent in the suburbs is currently $1,821, while the median rent in the city is $1,928. That’s a difference of only 5.8%.
City rents fell 2.5% year-on-year during the peak of the pandemic in January 2021, while suburban rents rose 3.9%.
And rents in general are going up for almost everyone. In July of this year, median US rents for all properties rose for the 17th consecutive month, according to the report. That number is now $1,879.
“Whether downtown or suburban, boarding or making a change, tenants are caught between a rock and a difficult place when it comes to affordability.
However, there is evidence that rental trends are starting to return to pre-2020. In July, average rent growth increased more in urban areas compared to suburbs year over year. , signaling the new power of cities to attract residents after the exodus. In urban areas, rents increased by 12.8% compared to 11.7% in suburban areas.
However, the report does not imply that renting in the suburbs will become more affordable anytime soon.
“The days of smaller premiums for downtown rentals are numbered, as the return of office work and city life is driving price growth,” Hale said. Rents in urban areas have increased relatively.
“Simply put, tenants are feeling it everywhere.”
Register Fortune feature email list so you don’t miss our biggest features, exclusive interviews and surveys.
