Young Adults Migrating to Cities in the South & West

1
Young Adults Migrating to Cities in the South
West

• www.ezLandLordForms.com

2
1 in 3 U.S. Counties Has A Higher Death Rate than
Birth Rate

• This trend is increasing in 2009 it was 1 in 4
  U.S. counties (880 of 3,143), today it is 1 in 3
  (1,135 of 3,143).
• Rural areas saw a population decline of .1 in
  2012.
• The South and West saw roughly four times the
  population growth rate that the Midwest and
  Northeast experienced in 2012.
• Young adults of child-bearing age are the
  likeliest to migrate.

3
As Young People Leave

• Population growth slows or
• declines
• Fewer people earn money
• Fewer people spend money
• Fewer people pay taxes
• Fewer people buy homes
• Fewer companies are started

4
The Remaining Older Population

• Spends less
• Declines in health
• Costs the government more money in social
  entitlement programs (e.g. Social security and
  Medicare)
• Is Less likely to start companies
• Is Less likely to buy homes

5
Remaining Companies and Governments

• See less revenue and are forced to cut jobs
• This creates fewer opportunities for young
  adults, encouraging them to migrate elsewhere
• A downward cycle is created and proves difficult
  to break

6
Where Are the Young People Going?

• Regionally To the Sun Belt and Mountain West
• Area Type Larger urban areas with robust job
  markets
• San Francisco, San Jose, Oakland, Austin,
  Houston, Dallas, Phoenix, Las Vegas and Orlando
  have all seen large young adult population
  increases

7
The Rise of Rental Concierges

• In some cities, like San Francisco, the sudden
  boom in the young professional population and
  subsequent spike in rents has given rise to a new
  industry of rental concierges.
• These concierges help migrant professionals find
  housing in tightly competitive rental markets.
• Rental concierges charge 1-2 months rent as a
  fee for their inside knowledge of city
  neighborhoods, local property management firms
  and apartment complexes.

8
Fewer Vacancies and Higher Rents

• Cities like San Francisco have seen an extremely
  low vacancy rate at just over 3 while rents
  leapt over 5 in the last year.
• San Jose has a low vacancy rate of 2.6 with a
  4.3 rise rents.

9
Law of Supply and Demand

• With an influx of high-paying jobs, a higher
  demand on housing is placed.
• In cities like San Francisco with housing
  regulations preventing construction of new homes,
  the supply of rental properties has greatly
  decreased.

10
Is There Hope for Rural Areas The North and
East?

• There is hope if enough entrepreneurial employers
  open businesses and create jobs in the
  under-employed and under-populated regions in the
  Midwest and Northeast.
• There are opportunities to find affordable real
  estate and lower cost of living in lower
  populated zones.