'Great migration' continues as more Americans flee New York, San Francisco
New data published by Bank of America shows that Americans are continuing to leave cities like San Francisco and New York due to affordability concerns.
The exodus from major cities in states run by Democrats continues.
A growing number of Americans are migrating from predominantly blue cities like San Francisco and New York, according to a Bank of America analyst note that is based on aggregated and anonymous internal customer data.
In the three-month period from April to June, there were "large population declines" in many Northeastern and Western cities, continuing a long-term trend that began during the pandemic.
New York and Boston saw the largest net population outflows in the Northeast, while San Francisco, Los Angeles, Seattle and Portland, Oregon, saw the largest drops in the West.
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New York and California have some of the highest tax burdens in the country. San Francisco has also been plagued by a spike in property-related crime, according to the California Department of Justice’s Criminal Justice Statistics Center.
Among the top 23 major metropolitan areas in the country, Columbus, Ohio, saw the biggest influx of people during the second quarter of 2024. That was followed by Austin, Texas; Las Vegas; San Antonio, Texas; and Jacksonville, Florida.
Texas, Florida and Nevada do not have a state income tax.
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Still, the findings from Bank of America also show that fewer households are moving between cities, likely due to the increased "hidden" costs of homeownership. Homeowners' insurance and property taxes are among the "hidden" costs that have spiked in recent years, particularly in the Sun Belt.
Gen Z and lower-income households were more likely to relocate in the second quarter, likely due to financial necessity rather than choice, the report said.
"In our view, the current level of inter-city moves is being held back by the ‘hidden’ costs of homeownership, alongside more overt costs such as higher mortgage rates," the report said. "At the same time, Gen Z and those on lower incomes, particularly renters, are continuing to move."
Affordability and cost-of-living are most likely the top reasons behind younger Americans and lower-income households moving.
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"It’s also important to note that it’s easier for younger and lower-income households to change addresses because a greater proportion of these consumers are renters rather than homeowners," the report said. The homeownership rate is just 35% for Americans ages 25 to 30, compared to a 66% rate across all ages.