The benefits of major cities amid remote work and rent inflation
Many renters feel that there is an imminent crisis of affordability in America’s largest cities.
New York City is showing up as a hotspot of rent inflation. The average rent for 1-bedroom apartments in Manhattan rose to $3,995 a month in May 2022 — a 41% increase from one year ago, according to Zumper.
Other hubs like Chicago, Los Angeles and Austin are experiencing sudden, double-digit rent increases. Zumper data shows that growth is particularly strong in Sun Belt cities such as MiamiThe rents for the apartment in N.J. have gone up to $2,700 per month from May 2022. That’s a 64% rise over the previous year.
Workers fled the most populous U.S. towns during the pandemic. After two years, many renters are back but commuters aren’t. Companies negotiate details of returning to work. Public officials are concerned about lagging transit ridership in cities such as New York.
Ed Glaeser, an economist at Harvard University, says cities are becoming more important — not less — in the age of remote work. He said that when you zoom to work you lose the chance to observe older people and learn from them.
Renters might not see the benefit of moving to more expensive areas, particularly if their job is done from home.
Remote work is limiting the potential for firms to educate new employees, according to researchers. Data produced by Microsoft’s workforce According to this, it’s more difficult for companies to exchange in-depth data remotely.
Andra Ghent is a Professor of Finance at the University of Utah. They also tell you that they won’t give you the same salary in most cases.
Check out the video to see if major cities still make it worth your time.