Droves of millennials plan to move outside the Bay Area to seek greener pastures, according to one poll. The reason for the exodus? The "rent is too damn high", the traffic is too damn congested, and well, Donald Trump.
Overall, according to this article, millennials (defined as people ages 18 to 39) are increasingly immobile. This age group is moving less, a phenomenon that is consequential for economic and housing opportunities. But seemingly, the Bay Area stands to buck this national trend, in no small part because of stifling rents.
Zillow reports that upwards to 45 percent of income in markets like San Francisco are devoured by rent costs. As a sidebar, this also incentivizes property owners to become landlords – interestingly, rental payments as a percentage of U.S. GDP hit an all-time high.
Historically, the Bay Area has been a beacon for young entrepreneurs seeking to be the next tech billionaire. Thriving employment with Airbnb, Twitter, Uber and other tech giants, coupled with a vibrant culture and top-ranked colleges have served as a magnet to 18-to-39-year-olds, yet this age group is struggling to make ends meet. Median rent hovers at $4,200 a month, according to Trulia metrics.
It should come as no surprise, then, that a new poll reveals 46% of Bay Area millennials have plans to exit the smoking hot rental market. For more commentary, consult this article on Business Insider.
“Losing our youth is a very bad economic and social strategy... But until we get serious about building the housing we need we’re going to continue seeing our region drained of the young and diverse talent that has helped make the Bay Area an economic powerhouse. We know what the solutions are – streamline local approval and reduce fees and regulatory costs – we just need the political will here and in Sacramento to make them happen. It can be done, it must be done and we’re working now to get it done."
~ Jim Wunderman, President and CEO of the Bay Area Council.
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