The 10 Real Estate Markets Seeing MASSIVE Migration in 2023 | Summary and Q&A

TL;DR

The rise of remote work and advances in technology have led to a significant shift in migration patterns and business relocations, impacting real estate investing.

Key Insights

• 🌍 Migration and relocation patterns have been greatly impacted by technology, allowing people to work remotely and choose their desired location, resulting in an increase in migration to different metro areas. This trend is likely to continue. (
• 🧮 Understanding data and information is key to making informed investment decisions, especially in real estate. The BiggerPockets YouTube channel provides additional content, beyond the podcast, that focuses on the nitty-gritty details of having a career in real estate. (
• 🏡 Investing in real estate should take into account not only the current market conditions, but also long-term trends and potential for growth. Pay attention to wage growth in cities, as it correlates with rent growth and property appreciation. (
• 🌇 Cities in the South, such as Dallas, Atlanta, Austin, Tampa, and Phoenix, have seen significant population growth as well as businesses moving to these areas. Understanding the type of businesses moving to a city can help predict long-term economic growth. (
• 🏢 Commercial real estate is experiencing a decline in demand for office space due to remote work, while residential real estate, particularly short-term rentals, is experiencing increased demand. Pay attention to the changing landscape of each market to find opportunities. (
• 🔍 When considering where to invest, it's important to understand the specific sub-markets within a city, as they can vary greatly. Look beyond headlines and dig into the data to make more informed decisions. (
• 🌞 Cities in the Sun Belt, such as Florida, Texas, and Arizona, have seen significant population growth and business relocation. However, be cautious of short-term market conditions, as long-term potential may be more important for investing. (
• 🏢 Understanding wage growth, business relocations, and migration patterns can help identify areas with long-term potential for real estate investment. Look beyond market headlines and gather as much data as possible to inform your decisions. (

Transcript

this is the BiggerPockets podcast show 7 29. when we talk about why I think it's a combination of factors but most of them are related to technology so if you think about the 50s what made someone determine where they're gonna move is probably where Dad's gonna work so markets would explode stuff like New York or Boston you had these areas where li... Read More

Questions & Answers

Q: Why has remote work and advances in technology led to a shift in migration patterns?

Remote work and technological advancements have allowed individuals to work from anywhere, transforming the need to be physically present in a specific location for work. This has opened up opportunities for individuals to move to more affordable areas or places that offer a higher quality of life, resulting in a shift in migration patterns away from expensive cities like New York and San Francisco.

Q: What are some factors contributing to businesses relocating to different areas?

Businesses are relocating to areas that offer tax incentives, a talented workforce, and lower costs of living. States such as Texas, Florida, and Arizona have seen significant business relocations due to these factors. Additionally, the ability for employees to work remotely has allowed businesses to choose locations that are more favorable in terms of taxes and overall expenses.

Q: Which cities have experienced the most population growth and business relocations?

Cities such as Dallas, Atlanta, Austin, Tampa, Raleigh, and Phoenix have experienced significant population growth and business relocations. These cities offer affordable living, favorable business environments, and a skilled workforce, making them attractive destinations for individuals and businesses alike.

Q: How should real estate investors approach these shifting trends?

Real estate investors should closely monitor migration patterns, business relocations, and wage growth in specific markets. Understanding where people are moving and why, as well as the types of businesses moving into an area, can help investors make informed investment decisions. Additionally, investors should consider the long-term potential of a market, even if short-term trends may not seem favorable.

Summary & Key Takeaways

• Advances in technology have made remote work possible, leading to a significant increase in people working from home and untethering them from specific locations.

• This shift in remote work has resulted in changes in migration patterns, with people moving away from expensive cities like New York and San Francisco to more affordable areas with lower taxes and a higher quality of life.

• Businesses have also followed suit, relocating to areas that offer tax incentives, a talented workforce, and lower costs of living.

• Cities in the Sun Belt, such as Dallas, Atlanta, Austin, Tampa, and Raleigh, have experienced significant population growth and business relocations, leading to real estate market booms.

• It is crucial for real estate investors to stay informed about migration trends, business relocations, and wage growth in specific markets to make informed investment decisions.