October 2024
On the move: Consumers bent on lower rent
As rents rise, are consumers choosing to pack their bags rather than pay more?
Key takeaways
- According to Bank of America internal data and continuing a trend that started at the beginning of the pandemic, people are moving from higher priced areas in the West and the Northeast, to relatively less expensive cities in the South and Midwest. Indianapolis, Columbus, Cleveland, and Austin top of our list of top domestic migration destinations.
- However, Bank of America data also suggests that people moving within the same metropolitan statistical area (MSA) are making up a larger share of movers each year. In our view, this may reflect some slowdown in hiring and consumers' increased labor market-induced anxiety in making large cross-city moves.
- Our internal deposits data shows that median rent payments are up 3.7% year-over-year in September 2024, a full percentage point lower than the official rate of rent inflation. This is likely due to people "downgrading" within the same city. In fact, higher-income customers in the Northeast have seen the biggest decrease in "new" rents, likely as they trade down amidst higher rental inflation rates.
Read our full analysis for a more in-depth look at these trends.
