9
Journal
IS COVID-19 CAUSING
MIGRATION TO
SUBURBS?
Reports that COVID-19 is causing
migration from urban centers to suburbs
abound, but are those stories entirely accurate?
First American Chief Economist Mark
Fleming recently revealed his insights
regarding those rumors about pandemic-
driven migration in America. Specifically,
Fleming weighed in on whether the
COVID-19 pandemic has driven an
acceleration in residents moving from the
cities to the suburbs in droves.
According to recent media reports, the
pandemic has sparked a mass migration from
urban areas to the suburbs. While it is a fact
that many Americans may indeed be feeling
cramped in cities and wanting the increased
space that the suburbs offers (especially
for those who have now been relegated to
working from home due to COVID-19-
related safety measures), Fleming believes that
this is not the sole catalyst for the shift toward
the suburbs that we are currently experiencing.
Data shows that this shift has been
happening for a while but has perhaps just
been made more pronounced considering
the pandemic. Other factors that have led
Americans to literally make a move has
been lifestyle considerations that cause the
suburbs to be far more attractive than cities,
such as having a greater chance at being able
to purchase a home in these lesser expensive
areas. is is especially true among the
millennial set.
But First Am consulted their data to see
if it in any way confirmed that the pandemic
has possibly accelerated this trend. Fleming
summarizes their findings: "While our
analysis may not yet confirm the widely
discussed pandemic-driven sprint to the
burbs, faint signals of a jog are picking up
pace."
While First Am's study did not 100%
prove that suburban housing markets have
strengthened at a disproportionally faster rate
when compared with urban markets directly
as a result of the pandemic, the increasing
house price appreciation in suburban ZIP
codes does seem to reveal that demand is
increasing (and is indeed higher than supply)
in the suburbs.
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