High Home Prices Make Americans Think Twice About Moving
Many Americans have been hesitant to move and a recent report is pointing towards higher home prices as a major reason behind it. High home prices and stagnant salaries create uncertainty when it comes to packing up and moving.
"'Increasing house price and income inequality' accounts for about two-thirds of the fall in long-distance migration between rich and poor U.S. areas in recent decades," according to National Mortgage News.
"Using Internal Revenue Service data, as well as figures from real-estate data provider Zillow Group Inc. and the U.S. Census Bureau, authors Tamim Bayoumi and Jelle Barkema tracked migration flows between areas of varying affluence, monitoring some 200,000 moves over 20 years between regions at least 200 miles apart."
Folks moving from poor to rich areas declined 72% due to the regional house-price differences. Meanwhile, 66% of the drop in folks moving from rich to poor areas were attributed to the rise in income inequality.
"Recent research has attributed the multi-decade decline in domestic migration rates to factors such as an aging U.S. population and the rise in national homeownership, with Americans less inclined to move as they get older or after taking on a mortgage," according to NMN.
To learn more about how home prices have been affecting the decision for Americans that may have been looking to relocate, click on the image above.
