The Great Reshuffle became a popular term in 2021, when nearly 3% of the workforce decided to leave their jobs. This caused severe staff shortages in hospitality, healthcare, and other industries. In 2023 we are still seeing a continuation of the Great Reshuffling. Here’s what we can expect in 2023 and beyond according to an Oakland Realtor:
People Moving From the Cities to the Suburbs
The covid pandemic fueling the migration from major cities to the suburbs has continued. A study by the Economic Innovation Group notes 1.2 million people left the nation’s large urban cities between July 2020 and July 2021, with another 860,000 leaving between July 2021 and 2022. This has caused 10 of the largest American cities to see nearly 50% of all offices being empty.
The effect of dramatic declines in population were minimized by the large influx of immigrants moving to big cities.
Many people are moving to the suburbs to escape the rising costs of city living. This is especially true for those who may have lost their jobs. (Suburbs tend to have lower taxes and cheaper housing options when compared to city living).
Others are moving to escape rising crime rates, seek less populated areas or want to buy property with land for farming.
People Are Moving South
The Sun Belt stretches across the United States, from California to North Carolina. The trend to move to this region has continued in 2023, with nearly 75% of the country’s population growth in the past 10 years occurring in this region. New Jersey, Illinois, New York, Connecticut, and California saw the largest population declines.
According to a Redfin survey, the following cities are seeing the largest influx of new inhabitants:
- Miami, Fl
- Phoenix, Az
- Las Vegas, Nv
- Sarasola, Fl
- Sacramento, Ca
- Cape, Coral, Fl
- Dallas, Tx
- Tampa, Fl
- Orlando, Fl
The Sun Belt region remains popular due to warm weather, lower taxes and more affordable housing when compared to the north. New Jersey, Illinois, Connecticut, and New Hampshire have property taxes above 2%. On the other hand, Alaska, South Dakota, Washington, Tennessee, Florida, and Texas do not levy a personal income tax.
This population increase in the south has kept the demand for apartments and single-family homes in high demand. As a result, many areas have seen a shortage of single-family homes available, keeping home prices high.
Shift From Home Ownership to Renters?
When people relocate, this increases the demand for housing in that area. The average rent across the United States is $1,966, a 6% increase compared to the same time last year. According to ATTOM. it is still less expensive to rent than buy in 95% of 222 U.S. counties, partly due to rising interest rates.
Even though homeownership costs have increased, the U.S. Census Bureau reports rental vacancy rates in the 4th quarter of 2022 (5.8%) remain similar to the 4th quarter of 2021 (5.6%). Vacancy rates were slightly lower than the 3rd quarter of 2022 (6.0%). In addition, homeownership rates in the 4th quarter of 2022 remained similar (65.8%) to rates of the previous year (65.5%).
Age also played a factor in home ownership: 79.5% of those aged 65 and older owned their home, while 39% of those 35 and under were homeowners. On average, younger people don’t have sufficient savings to purchase a home: student loan debt is a common obstacle to saving, while older people worked longer and had more savings.
Summary
The “Great Reshuffling” looks to continue in 2023 and beyond. As Americans continue to relocate, we can expect to see a demand for housing to shift as well. In addition, job opportunities, inflation, and interest rates will play a key role in the housing market.
About Oakland Realtor of Range Homes
Are you looking to buy or sell a home? Need help determining your next move? Having a licensed real estate agent is essential. Here at Range Homes, we have helped our customers buy and sell homes for years. We also have great market data to help you pick the perfect area and are ready to help you find your dream home during these unprecedented times. Contact us HERE for your real estate needs.
Why Oakland CA?
Oakland CA is known for its good economy, beautiful landscapes, and extremely popular housing market. When other states and territories have experienced a decline in housing prices the Bay Area, in general, has remained strong. This doesn’t mean you should not diversify your portfolio across many states, but Oakland Realtors agree that this is certainly a strong place to start for a novice investor. There are even some great low-cost homes that are ripe for renovation.
We have a team of friendly, helpful Oakland Realtors that specialize in East Bay CA real estate and property sales that can help you work out how to best get your property portfolio started. Our agents are here to put your needs first, get you the best deals and offers, help you buy or sell your dream home and build your investment portfolio. Reach out to our team today to find out your options.
If you are looking to find an Oakland Realtor, looking for homes for sale in East Bay CA, or even to sell your home with someone who will make sure you get the best deal and understand your needs – look no further – when you work with us, consider yourself family.
