Housing affordability has emerged as an important public concern, but housing rents have not increased the same in all locations. Rents have soared in large American cities such as New York and San Francisco, but smaller metropolitan statistical areas have been able to grow with a more modest increase in rents. Because the supply of new housing has failed to keep pace with demand in many large cities, some households are moving to lower-cost locations that provide a high quality of life.
This article explores how rapidly evolving demographics and employment arrangements are changing the relative importance of amenities for households choosing where to live. Policymakers should consider the rising importance of amenities as they seek solutions to the affordability crisis in large coastal cities.
This article appeared in the Third Quarter 2024 issue of Economic Insights. Download and read the full issue.
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