America’s wealthy households are increasingly moving to coastal cities on both sides of the country, but those with more modest incomes are either relocating to or being pushed into the nation’s Rust Belt, according to a new study.
That’s creating “income sorting” across the country, with expensive cities like Los Angeles, New York and Seattle drawing wealthier residents. For instance, Americans who move to San Francisco earn nearly $13,000 more than those who move away, the study found. Conversely, those who are moving into less expensive inland cities such as Detroit or Pittsburgh earn up to $5,000 less than those who are leaving.
To be sure, gentrification – when the rich move in, pushing out the poor – is a well-known and long-standing trend that’s impacted neighborhoods in cities such as New York. But the study from Dr. Issi Romem, a fellow at the Terner Center for Housing Innovation at the University of California, Berkeley, indicates gentrification may now be a national phenomenon.
The trend may not only hurt poorer residents who are forced out, but also the rich Americans who move to coastal cities. Well-off residents who move to already expensive cities like San Francisco are bidding up real estate prices until property becomes unaffordable for all but the very richest families. Many end up renting — until that, too, becomes unaffordable.
Why the allure of the Atlantic and Pacific coasts? Most coastal cities like Boston are now highly desirable due to university access and high-tech jobs. But their close proximity to water means they are running out of room for construction.
Foreclosure starts rose in the U.S. in July for the first time in three years
Foreclosure starts rose in the U.S. in July for the first time in three years, as 44% of markets across the country saw increases.
Real-estate data firm Attom Data Solutions on Tuesday said 30,187 U.S. properties started the foreclosure process for the first time in July, up 1% from June and up less than 1% from a year ago, ending a streak of 36 months of year-over-year decreases.
Attom Data said foreclosure starts rose in 96 of the 219 metropolitan statistical areas it analyzes, with 33 of those areas posting their third straight monthly increase.