Migration trends could shift again as cost of living benefits for popular post-COVID cities vanish

During the pandemic, homebuyers left urban centers for the suburbs, particularly Sunbelt regions, in pursuit of a lower cost of living and attractive climates. The impact on real estate prices has been widely discussed, but the population shift also created a greater demand for services such as restaurants. Local businesses didn’t have the staff to serve these new customers even as there was often a surplus of labor in the urban core, and this contributed to the imbalanced labor market we’re experiencing. Now with surging prices of homes and services in some of these areas, there may be less of a cost of living benefit to moving. And if fewer people are moving, we discuss what that could mean for sales of home related goods. You may also enjoy listening to the Merrill Perspectives podcast, featuring conversations on the big stories, news and trends affecting your everyday financial life.

 

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