Young Adults Young Adults Migrating to Migrating to Cities in the Cities in the

South & West South & West

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1 in 3 U.S. Counties Has A 1 in 3 U.S. Counties Has A

Higher Death Rate than Birth Higher Death Rate than Birth

RateRate• This trend is increasing: in 2009 it

was 1 in 4 U.S. counties (880 of 3,143), today it is 1 in 3 (1,135 of 3,143).

• Rural areas saw a population decline of .1% in 2012.

• The South and West saw roughly four times the population growth rate that the Midwest and Northeast experienced in 2012.

• Young adults of child-bearing age are the likeliest to migrate.

As Young People LeaveAs Young People Leave

• Population growth slows or declines• Fewer people earn money• Fewer people spend money• Fewer people pay taxes• Fewer people buy homes• Fewer companies are started

The Remaining The Remaining Older PopulationOlder Population

• Spends less• Declines in health• Costs the government more money in social

entitlement programs (e.g. Social security and Medicare)

• Is Less likely to start companies• Is Less likely to buy homes

Remaining Companies Remaining Companies

and Governmentsand Governments

• See less revenue and are forced to cut jobs• This creates fewer opportunities for young adults,

encouraging them to migrate elsewhere• A downward cycle is created and proves difficult

to break

Where Are the Young Where Are the Young

People Going?People Going?

• Regionally: To the Sun Belt and Mountain West• Area Type: Larger urban areas with robust job

markets• San Francisco, San Jose, Oakland, Austin,

Houston, Dallas, Phoenix, Las Vegas and Orlando have all seen large young adult population increases

The Rise of “Rental The Rise of “Rental

Concierges”Concierges”• In some cities, like San Francisco, the sudden

boom in the young professional population and subsequent spike in rents has given rise to a new industry of “rental concierges.”

• These concierges help migrant professionals find housing in tightly competitive rental markets.

• Rental concierges charge 1-2 months’ rent as a fee for their inside knowledge of city neighborhoods, local property management firms and apartment complexes.

Fewer Vacancies and Higher Fewer Vacancies and Higher

RentsRents

• Cities like San Francisco have seen an extremely low vacancy rate at just over 3% while rents leapt over 5% in the last year.

• San Jose has a low vacancy rate of 2.6% with a 4.3% rise rents.

Law of Supply and DemandLaw of Supply and Demand

• With an influx of high-paying jobs, a higher demand on housing is placed.

• In cities like San Francisco with housing regulations preventing construction of new homes, the supply of rental properties has greatly decreased.

Is There Hope for Rural Is There Hope for Rural Areas & The North and Areas & The North and

East?East?

• There is hope if enough entrepreneurial employers open businesses and create jobs in the under-employed and under-populated regions in the Midwest and Northeast.

• There are opportunities to find affordable real estate and lower cost of living in lower populated zones.