The 'Great Migration' continues: more citizens fleeing San Francisco to Texas
A Bank of America report - reviewed by Fox Business - revealed that the trend of leaving Democrat-run cities continues to accentuate. A new finding: generation Z is the most likely to move.
Man carrying moving boxes.
The exodus of people from major cities in Democrat-run states continues. Driven by the high cost of living, a growing tax burden and concerns about safety, residents of cities such as New York City, Boston and San Francisco are opting to move to states such as Texas and Florida.
According to a report by Bank of America, in three months - April to June 2024 - there were "large population declines" in many major cities across the country. In contrast, in states such as Texas and Florida the opposite happened. This is partly due to the fact that they offer more affordable housing, lower taxes and a higher quality of life, attracting both young professionals and families looking for a quieter, friendlier environment.
Generation Z is moving due to finances.
The study revealed that young people belonging to Gen Z and low-income households were more likely to move due to their financial situation:
"In our view, the current level of moves between cities is being held back by the hidden costs of home ownership, along with more overt costs, such as higher mortgage rates (...) At the same time, Generation Z and those with lower incomes, particularly renters, continue to move."
It is also important to note that it is easier for younger, lower-income households to change addresses because a greater proportion of these consumers are renters rather than homeowners.
New York and San Francisco lose their appeal
New York and San Francisco have begun to lose their appeal due in part to the progressive policies of the city and state governments that create an unstable and difficult financial climate for all social classes in addition to the chaos in these cities due to the present insecurity and migratory crisis.
On the other hand, Texas and Florida have emerged as preferred destinations due to their favorable fiscal policy, warm weather, and a growing supply of jobs in sectors such as technology, health and construction.
While New York and San Francisco face a shrinking tax base and a growing housing crisis, states such as Texas and Florida are experiencing rapid population growth, creating both opportunities and challenges in terms of infrastructure and public services.
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