After years of flocking to city centers, American homeowners are now returning to familiar grounds: the suburbs.
With America’s major cities seeing population growth slow, 14 of the 15 fastest growing cities in the country are now actually suburbs, according to the Wall Street Journal. And the popularity of some suburbs has caused a development boom, with builders barely managing to keep up with demand.
After the recession, young workers flocked to major American cities. The trend caused a multifamily development boom in cities like Chicago and Seattle, and also caused the cost-of-living to skyrocket in some cities.
Now, as Millennials begin to get married and have children, they are returning to the suburbs. The growth rate for major American cities is now down to 0.69 percent, a 40 percent plummet, the Wall Street Journal reports. The suburbs, meanwhile, account for 79 percent of the total population living in the 50 biggest urban areas in America.
The trend is having an impact on the real estate world. Institutional investors already have turned to the suburbs in search of higher yields, with many urban markets dealing with apartment oversupply and flat rents. The migration to the suburbs has caused major suburban public transportation and highway congestion.
[WSJ] — Joe Ward