A wave of college-educated Americans is leaving pricey coastal cities for more affordable places like Birmingham and Austin. The migration is reshaping urban economies and redefining cities' futures, with rising housing costs driving this exodus. Personal stories highlight the bittersweet attachment to vibrant urban life versus the appeal of quieter towns. There's also a discussion on the quest for job satisfaction over mere productivity and legislative updates, highlighting challenges in adapting to these shifting demographics.
College-educated workers are leaving big coastal cities due to high housing costs and are moving to smaller cities with more affordable housing options.
The migration of college-educated workers from big coastal cities to smaller, more affordable cities exacerbates geographic inequality and poses challenges for the big cities in terms of economic activity loss and tax revenue loss.
Deep dives
College-educated workers are leaving big coastal cities
College-educated workers, including lawyers, consultants, and engineers, are increasingly leaving big coastal cities like New York, San Francisco, and Washington DC. This shift in migration patterns has started about a decade ago and is driven by factors such as the high cost of living, specifically the cost of housing. These workers, who were once the lifeblood of these cities, are now moving to smaller cities that offer more affordable housing options, such as Austin, Nashville, and Salt Lake City. The pandemic and the rise of remote work have further accelerated this trend, allowing workers to relocate to cheaper cities while keeping their jobs. However, the exodus of college-educated workers poses challenges to the big cities, including economic activity loss, tax revenue loss, and the potential gentrification of the receiving cities.
The impact of geographic inequality
The trend of college-educated workers leaving big cities like New York and San Francisco exacerbates geographic inequality in the United States. These cities, known as 'superstar cities', have long been centers of economic activity and innovation, fueled by the concentration of highly educated workers. However, as these cities become increasingly unaffordable, lower-wage workers and now college-educated workers themselves are moving away, widening the gap between these cities and the rest of the country. This inequality not only affects individuals but also the overall economy. Economists argue that widespread prosperity can be achieved when more people, especially educated workers, can live and contribute to the most productive and prosperous places. The migration of workers to cities like Austin, Denver, and Nashville could potentially create new economic hubs, but the challenge lies in maintaining affordability and ensuring sufficient housing supply.
The importance of affordable housing
Housing affordability plays a pivotal role in shaping the migration patterns of college-educated workers. The escalating cost of housing in cities like San Francisco and New York has become a significant factor pushing these workers away. To retain and attract these workers, cities like Austin, Salt Lake City, and Phoenix have prioritized the development of affordable housing and invested in downtown redevelopment and amenities. However, many of the expensive coastal cities have been slow to address their housing crises. The reluctance to build more housing, driven by incumbent homeowners' desire to maintain property values, hinders the ability of these cities to accommodate the influx of workers, perpetuating the affordability crisis. Building more housing, including explicitly affordable options, is seen as a crucial step to sustain economic growth and prevent these rising cities from experiencing the same housing challenges as their predecessors.
Quality of life considerations
One of the main drivers behind the migration of college-educated workers from big coastal cities to smaller, more affordable cities is the desire for an improved quality of life. Workers cite factors such as lower living costs, access to homeownership, reduced commute times, and the ability to engage in hobbies and enjoy leisure time. Smaller cities offer amenities and a sense of community that resonate with these workers, giving them a sense of stability and the opportunity to achieve goals like owning a home, which would have been difficult or impossible in the expensive coastal cities. These personal considerations often outweigh the benefits of remaining in a big city, even for highly educated professionals.
In recent years, well-paid and college-educated Americans have shed major cities like New York, San Francisco and Washington for places like Philadelphia or Birmingham, Ala.
Emily Badger, who writes about cities and urban policy for The Upshot at The New York Times, explains what is driving the change, and what it means for the future of the American city.
Guest: Emily Badger, a cities and urban policy correspondent for The New York Times.
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