People are moving to Los Angeles for the location first, according to new data from Apartment List. The report shows that 58.3% of people moving to the market are moving without securing a job first. Los Angeles is one of the top location-first markets in the US, and one of the only expensive markets at the top of the list. Las Vegas, tops the US for location-first moves, followed by Phoenix, Portland and San Diego. Pricier markets, like Washington DC, San Jose and Boston, on the other hand, see more movers securing jobs first. We sat down with Sydney Bennet, senior research associate at Apartment List, to talk about this trend and how it is impacting the real estate market.
GlobeSt.com: Why does Los Angeles see so many location-first movers?
Sydney Bennet: L.A. is unique in that you have film and entertainment industries. In other more expensive metros, you have a lot of the job-first movers, but I think the nature of the industries that a lot of people are perusing in Los Angeles are location-specific. You need to move to L.A. is you want to be in those fields, and you need to be on the ground to get those jobs. L.A. is a bit of an exception compared to other major cities for that reason. New York is in a similar ballpark there. An engineer, for example, has more options. A person in that field could move to Boston or New York or San Francisco. A lot of the job-first movers in L.A. are people that are in industries that are available in more places.
L.A. does better in the share of people that want to settle down than other California cities. Compared to San Francisco, more people want to stay in Los Angeles, and I think that is a good sign that the growth is sustainable. When we ask, usually around 80% of renters say that they want to purchase a home, but it is hard to know who will be able to buy a home.
GlobeSt.com: What does this mean for multifamily owners or for the housing market?
Bennet: L I think that owners may get more tenants looking to sign shorter-term leases while they are looking around for jobs. Overall, whether people are moving for jobs or for location, it is good news for the rental market because movers will need a place to live and they generally start out renting.
GlobeSt.com: Las Vegas, surprisingly, sees the most location-first movers. Why is that market seeing so much migration?
Bennet: L There are two pieces that are contributing to make the numbers at the top of the list. The first is that Las Vegas is getting a lot of people that are leaving California because of high housing costs because it is nearby and much cheaper. That is one piece. The other is that the main industries there are hospitality and tourism. There are a lot of jobs that you could do anywhere. People in those industries might pick Las Vegas because the cost of living is lower or because there are a lot of jobs available there. However, a hotel or service employer probably won't higher you before you are already there.
GlobeStc.om: In general, who is moving to Los Angeles, whether motivated by location or jobs?
Bennet: L Most of the population growth is driven by new immigrants, so there have been a lot more international movers to California. Because the market is so expensive, it has not been as popular of a destination for people moving from other parts of the US, but it is still a popular place for immigrants from other countries. I don't imagine very rapid population growth when there isn't enough housing for people who are in lower or middle class. I don't think that L.A. is going to shrink, but I think that it does slow the population growth. The region more broadly, however, is going and it is on the edges.
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Kelsi Maree Borland
