The young and the restless: High-earning millennials flock to cities

Job growth, lower crime and tight credit all contributing to trend

TRD New York /
Jun.June 10, 2016 09:35 AM

Young, educated professionals are moving to U.S. cities, driving up prices and spurring more development. Of the top 30 percent of U.S. households by income, 400,000 more lived in urban neighborhoods in 2014 than did so in 2006, at the peak of the housing boom, according to a new University of California – Berkeley study.

Rents in cities nationwide now average about $1,730 a month, compared to $1,250 for suburban spaces, according to CoStar.

Home prices in cities are 2 percent higher on average than those in the suburbs — a reversal of the relationship in 2010, when suburban homes were worth 4 percent more on average, the Wall Street Journal reported.

Millennials are drawn to economic and cultural opportunities, a drop in crime, and the increased difficulty of financing home purchases after the housing bust. The influx is leading to higher real estate prices and new development, as well as upgrades to city infrastructure.

It’s not all roses, though.

“The housing affordability issues are no longer limited to the high-cost coastal cities” Stockton Williams of the Urban Land Institute’s Terwilliger Center for Housing told the Journal.

The Real Deal dove deeply into the effect of millennials on the real estate scene in its June issue. [WSJ]Ariel Stulberg


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Democratic State Sen. James Skoufis (Credit: NY Senate)

Real estate agents facing subpoenas after failing to appear at hearing

WeWork Co-CEO Artie Minson (Credit: Getty Images, iStock)

WeWork tries to escape leases — and eviction

207 East 94th Street, Glenwood Management’s Carole Pittelman and Hirschfeld Properties’ Elie Hirschfeld (Credit: Google Maps)

Glenwood Management makes rare sale with Upper East Side deal

Vornado's Steve Roth and 220 Central Park South (Credit: Getty Images, iStock)

At 220 CPS, buyer joins $100M club

VTS CEO Nick Romito (Credit: iStock, VTS)

VTS to focus on retail customers in 2020

arrow_forward_ios
Loading...