Richer Americans are moving to the coasts while poorer families are relocating to the Rust Belt as part of a national gentrification trend that is dividing the haves and have-nots geographically, according to a new study.
The phenomenon is called ‘income sorting’ by a researcher at BuildZoom.com, and it means that the people who move to more expensive metropolises like New York and Los Angeles are increasingly wealthy, while those who are moving into more depressed inland cities are making less money than those who are leaving them behind.
‘What we are seeing happening is the population being separated into the haves and the have-nots,’ study author Issi Romem said. ‘The haves are increasingly being concentrated in the expensive coastal cities.’
The study uses San Francisco as an example, but costs are only part of the problem there, as we know.
The problem is exacerbated by high housing costs in coastal cities, where demand is high, supply is low and ‘homebuyers and renters in these metros compete with each other over a smaller housing stock, bidding up prices, and pushing out those who are the least financially able,’ the study said.
The result is that lower income people are then deterred from moving to those cities, further exacerbating the problem and creating a never-ending cycle of rising prices for the wealthy who are left behind. Eventually these cities could become unaffordable for all but the wealthiest Americans.
The reason I stayed here after losing my house in 2014 is the same reason I’m coming back after my trip: to be close to my church. And God has provided for me.
But I can’t blame anyone else for quitting CA and all the other socialist utopias around the nation. The Rust Belt is here.
And, personally, I think that many of the rich will wake up and leave, too. Or be trapped in the gilded cages.
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