Florida: Starting around 2000, young Americans had begun moving back into cities. At the time, most people paying attention had been expecting U.S. urban populations to continue declining. But there they were, young people, moving back in. It was quite surprising. That trend started to accelerate after 2010, driving a big urban revival in America—when about half the population increase in U.S. cities was among people aged 25 to 34.
The same trend also drove a massive surge in housing prices in superstar cities like New York, San Francisco, and Los Angeles—along with places like Boston, Seattle, or Washington, D.C. And by 2020, the same people who accounted for the urban revival of the 2010s were now well underway in forming families and moving away.
Meanwhile, new digital technologies were already starting to help enable this movement, even if most people weren’t yet using them. I myself had no idea what Zoom was before March 2020. But then there was this rapid adoption of these technologies, which helped spur the movement away from large metro areas and their high housing prices.
Most of this movement was relatively local, to nearby suburban, exurban, and rural areas—Hudson Valley, for example, was the number-one destination for people getting out of New York City—though some of the movement was to new places altogether, like Bozeman, Montana; Park City, Utah; Nashville, Tennessee; Austin, Texas; and Miami, Florida. Some of that was permanent, some was temporary.
Today, though, this trend has decelerated or stopped. Many of the urban refugees responsible for it wanted walkable neighborhoods with a little downtown center. If you look at Miami, for example, housing prices in neighborhoods like that might have increased three to five times over the last few years. It used to be affordable to buy a single-family home in these neighborhoods; now it’s become out of reach for anyone but the very wealthy. So now you see this counter-trend of people returning to the bigger cities, enabled by a labor market that’s creating more opportunities for dual-career households. |