The effect mass migrations out of the big cities have on US economy

Industrialization in the late nineteenth and early twentieth century brought many Americans into big cities and urban areas. Between 1870 and 1920 alone, eleven million Americans moved from smaller and less developed areas to big cities. At the same time, around 25 million immigrants, mostly from Europe, moved into the country and a large percentage of them moved to the largest American cities as well. Therefore, in 1920 we already had more people living in big cities than in rural areas. And it happened for the first time in American history. However, it seems like this trend is changing. And it looks like it is mostly driven by the coronavirus pandemic. In the following article, Verified Movers will look at what are the places with the most outbound and inbound moves and the effect mass migrations out of the big cities have on US economy.

Is the pandemic the main reason for this trend?

The trend of moving to big cities has been around for at least 200 years, if not longer.  However, looks like recently things are starting to change. And this is becoming more noticeable since the coronavirus pandemic struck our society. Simply, living in heavily crowded areas became very difficult because of the characteristics of this virus, which demanded that people keep physical distance and do not gather in large numbers.

This meant that going to work, buying groceries, going to the bank, visiting a hairdresser, or attending a music festival or any other kind of gathering, even in the open, became very complicated if not impossible.  This completely deletes all advantages that drew people to big cities in the first place. But is the pandemic really the main reason why people moved in 2020? A recent survey, conducted in November showed us how many people are really moving because of coronavirus.

Racially it looks like this:

The pandemic is not the reasons on its own

The pandemic, however, is something that is not the reason for moving on its own. It affects other things in our lives that make us want to move. People that said they moved because of the pandemic were later asked to state their reasons for relocating. Here is what they said:

Is there really a mass exodus?

Of course, some people recognized this and started thinking about moving out of large metropolitan areas and migrating to smaller, rural places and suburbs. However, the numbers are not that big.  At least from those big cities’ point of view.

Even though everyone is talking about the mass exodus, in reality, big cities like NYC or San Francisco lost only a small portion of their inhabitants – a fact that can be seen if we only look at the data from some of the most popular long distance moving companies California can offer, for instance. The effect mass migrations out of the big cities have on US economy is in fact mostly noticeable in the small places that have received a large number of newcomers.

So, are people really moving out of big cities or is it just a rumor?

In April 2020, when it became clear that the coronavirus pandemic is going to have a huge impact on our lives and on our country, a survey was conducted that showed that around 40 percent of people living in the big cities were considering moving to rural areas and suburbs.

However, things have changed since then. Was it for the people’s ability to adapt to change or was it for the fact that this virus wasn’t something that people thought it will be, yet, another survey from August the same year showed that at least 74 percent of urbanite are most likely not going to move anywhere? Of course, this is just one survey that doesn’t have to mean anything. Other surveys, on the other hand, are showing that people are actually moving from large urban areas like NYC, Los Angeles, San Francisco, the Greater Washington D.C. area.

The same study showed that people from those areas are moving to small and medium-sized places like Hudson, NY, Barnstable Town, MA, Ocean City, NJ, and similar cities and towns. Some long distance moving companies New York based, for example, showed that in 2020 compared to 2019, they had a 50 percent increase in people that are moving out of big cities.

• Cities with most outbound moves – NYC, Los Angeles, San Francisco, Chicago, the Greater Washington D.C. area

Is this a permanent or temporary thing?

So people are undoubtedly moving out of big cities. The question is, in what numbers. Is it a mass exodus or the great reshuffling that some like to call it or is it something that we will not feel at all? Some surveys from top movers in Los Angeles, for example, showed that most of these moves are in fact temporary solutions. Most of the people are moving to smaller places and plan to stay there until the pandemic is over. After everything is back to normal, they will most probably return to their cities.  And that is something that is expected.

Particularly if the pandemic is the main driving force for these migration patterns that we see recently. When everything is back to normal, we can probably expect to see people return to places they came from. Especially when remote working is cut to a minimum.

Some people will return but many of them won’t

So it is clear that some percentage of these moves is temporary. When things get back to normal it is inevitable that some city dwellers will return to their cities especially because of the lack of professional and business opportunities in smaller places.  However, there is no measurement that can calculate exactly how many of these moves is going to be a temporary solution.  Still, it is safe to say that some percentage is going to be permanent.

Some people will definitely leave big cities and move to smaller places. Especially adjacent suburbs where they can get the best of both worlds. They can have their big-city professional, cultural, and economic opportunities while utilizing the lower cost of living, more space, and other advantages they get from living in the suburbs. And that is something that people realized even before Covid.

Large metropolitan areas were really struggling to maintain and grow their population numbers before the pandemic. The virus only speeded up this process of exchanging overcrowded and expensive cities for smaller, more affordable, and peaceful places.

Besides the pandemic, there are other reasons why people are moving from big cities.  What do they say? Was it a good decision?

We mentioned the pandemic as one of the main things that pushed people to move from their cities to suburbs. However, the fear of the virus is not the only reason why people are moving out of big cities. It is only something that induced a spark. The reasons, in reality, are way more diverse.

Economic reasons, of course, are always the main drive force in every migration. And that is the case here as well. People are looking for a lower cost of living. And since the pandemic made working-from-home something normal, where your home is located becomes completely irrelevant. So people now have an opportunity to keep their well-paid jobs from big cities and move to suburbs where they will have can have the bigger comfort for only a portion of the amount they used to spend on their daily needs.

Not only that. People are now looking for more open spaces that they can call their own. A house with a yard is something that is unthinkable to most big-city residents. Now, they realized that they could have their own piece of heaven just by moving to a smaller town or a suburb not far from where they used to dwell before the pandemic.  Many new opportunities are opening up after the move. Nearly a two-third of people who moved to small and medium-sized places said their life gone for the better after the move.

From a big city’s point of view, these numbers do not mean much

People are moving from big cities to smaller places. This, however, doesn’t mean that the largest American cities are going to die. Places like NYC or SF are certainly going to survive and recover pretty quickly. Especially after property and rental prices drop. This will definitely induce a new demand and large cities will be back to what they used to be before this pandemic. So what are the effects mass migrations out of the big cities have on US economy then?

This will definitely have a positive effect on the US economy even though it might not look that way at first glance. How can an exodus from NYC have a positive effect on the economy? Well, it is actually pretty simple. First of all, there is no mass exodus like some media like to portray. We are only talking about a percentage or two of New Yorkers who moved out of the city. NYC is not going to feel the material effects of that one percentage leaving the city.

On the other hand, that one percent could mean fifteen or more percentage increase in a smaller place like, Milwaukee, Wisconsin for example. People that are leaving big metropolitan areas permanently do not represent a big loss to these cities. Yet, it could have a huge impact on these smaller places.

The effect mass migrations out of the big cities have on US economy will mostly be seen in these smaller places

A large inflow of newcomers to small and medium-sized cities and suburbs is not something that automatically means GDP growth. However, it is one of the main factors and could mean a complete transformation for these places. And the main effect mass migrations out of the big cities have on US economy.

Of course, the first thing that will be noticeable is the increase in demand for a number of goods and services. Most probably those places will see an increase in demand for housing, furniture, food, transportation. Later on, demand for jobs, cultural attractions, etc. will be noticeable as well.

Next, since New York City, Los Angles, Washington D.C. Chicago, have higher percentages of highly educated individuals, these migration trends may contribute to the intellectual capital of these smaller places, which will surely positively affect the economy.

Also, professionals moving from large urban areas will definitely bring a new and different set of ideas that will affect and develop diversity and new perspectives that will have a positive effect on these places’ economies. Another benefit that might come out of this is that a large number of people moving in from a large urban area will help these suburbs retain their citizens who would otherwise move in the other direction. When they see people coming in from NYC or LA, they will not be so hasty to move there. Especially because these newcomers are bringing in new perspectives and tastes that these people were dreaming about before.

The conclusion is that the loss of a couple of thousands of residents won’t greatly affect places like New York City, Los Angeles, or San Francisco. On the other hand, a couple of thousands of new residents could mean a lot to places that only have a population of 500,000 or less.

The effect mass migrations out of the big cities have on US economy will be mostly seen in these places

We know that people are moving to cities like NYC, Los Angeles, San Francisco. But where are they moving to? It is an important piece of the puzzle if we want to find out what kind of effect mass migrations out of the big cities have on US economy.

Surprisingly or not, most people are not moving very far. Around 84% of people are actually moving within the same metro area. That is why we see places close to NYC, LA, SF, for example, that have a huge increase in population numbers. Nevertheless, here is a list of places that benefited the most since the pandemic struck:

• Hudson, NY
• Barnstable Town, MA
• Ocean City, NJ
• East Stroudsburg, PA
• Grass Valley, CA
• Fernley, NV
• The Dalles, OR
• Oak Harbor, WA
• Breckenridge, CO

Hudson, NY

Hudson is located in Columbia County and currently, it is home to many young professionals and families.  Before the pandemic, it had a population of 6,235. And it is one of the places that has seen a large number of newcomers recently. The effect mass migrations out of the big cities have on US economy will be noticeable here very soon.

Barnstable Town, MA

Barnstable Town is located in Barnstable County, MA. It is one of the best places to raise a family in the area.  According to data gathered from some of the most reputable long distance moving companies Massachusetts can offer, it is one of the places that had the largest increase in inbound moves.  Before this, it had a population of 44,406.

Ocean City, NJ

Ocean City is located in Cape May County, NJ and it is considered the best place to live in the area.  It is one of the places that had the largest inflow of people since the pandemic began according to the data gathered from some of the most highly-rated long distance moving companies New Jersey has. Also, it is one of the places where the effect mass migrations out of the big cities have on US economy will be very clear.

East Stroudsburg, PA

East Stroudsburg is located in Monroe County and it is one of the best places to live in the area. It has a population of 10,333. Some of the best long distance moving companies Pennsylvania has, shown us that it is one of the places that benefited the most from these newly established migration patterns.  This means that the effect mass migrations out of the big cities have on US economy will be very visible in this place.

Grass Valley, CA

Grass Valley is located in Nevada County and it is one of the best places for retirement in the area. It has a population of 12,891 and it is one of the places where the effect mass migrations out of the big cities have on US economy will be most noticeable.

Fernley, NV

Fernley is located in Lyon County and it is one of the best places for retirement in Nevada. Also, it is one of the places where the effect mass relocations out of the big cities have on US economy will be more than obvious. Especially when you look at the data from some of the busiest long distance moving companies Nevada has.

The Dalles, OR

The Dalles is located in Wasco County and it is considered one of the best places for retirement in Oregon. Before the pandemic, it had a population of 15,448. After, some of the most well-established long distance moving companies Oregon has, showed that this is also one of the places that felt an increase in population numbers.

Oak Harbor, WA

Oak Harbor is located in Island County and it is on the list of some of the best places to, live in the US. Surprisingly or not, the finest long distance movers Washington can offer showed us the data that clearly says that Oak Harbor is one of the places that has seen an increase in inbound moves. Also, it is one of the places where the effect mass migrations out of the big cities have on US economy will be visible soon.

Breckenridge, CO

Breckenridge is located in Summit County and currently has a population of 4,938. It is one of the best places to live in the US. Because, despite not being close to any of the places that we mentioned in this article, some of the most trusted long distance movers Colorado has explained that Breckenridge is also on the list of the places where the effect mass migrations out of the big cities have on US economy will be noticeable quickly.

The effect mass migrations out of the big cities have on US economy are positive

As you can see, the effect mass migrations out of the big cities have on US economy will not be so noticeable in NYC, LA, SF even though those are the places with the largest number of outbound moves.  The biggest effect will be seen in those smaller places. And it is definitely something positive that will help the US develop further. Especially in the rural areas.