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Heres why rents are plummeting in six cities.
There are alsofive places where the cost to rent a two-bedroom home is plummeting.
Many Americans were fleeing more liberal-run states to escape the strict COVID restrictions that were enforced, he said.
Because many people started working from home during the pandemic, they rethought their living situations.
The fallout from those moves is now affecting the rental prices in these bigger cities.
The Tax Factor
Another important element in this rental market shift is taxation.
Almost all the states that Americans are moving towards have lower or no state income tax, said DeLuca.
Juxtapose this to the cities they are leaving which have higher state income tax.
This difference in tax burdens is a major driver of migration patterns.
This inflationary pressure has made life in already expensive cities even less affordable.
As a result, its no surprise that people are moving out.
The baby boomers are retiring at a clip of 10,000 people a day.
They are moving south, he said.
This mass migration of retirees is reshaping rental markets across the country.
The Migration Equation
To put these trends into perspective, DeLuca shared some interesting statistics.
This migration pattern is backed up by aU.S.
The Ripple Effects
Of course, there are good and bad news here.
Lower rents mean more accessibility for people who want to move to these areas.
But it also means that investors might see their returns diminish.
As with most things, its a cyclical journey.
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