How the “Affordability Crisis” Migrated from High-Income Rental Markets, as Manhattan & San Francisco, to Lower Income Markets, as Detroit & Fresno

by Wolf Richter
Wolf Street

The distortions caused by the shift to working from anywhere are hitting households that can least afford it.

For months, we have seen in the data how the large-scale shifts coming out of the Pandemic have impacted the housing markets around the country. In terms of rents, tenants have left big expensive places, such as San Francisco, Silicon Valley, Boston, or Manhattan, thereby leaving behind high vacancy rates, plunging rents, and massive churn by the stayers-behind that are chasing that free upgrade to a nicer apartment, as landlords are trying to keep their units filled.

And we have seen in the data that this outflux has created, conversely, a large-scale influx in the destination places, usually less expensive markets, and have driven up rents in those markets.

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