Housing shortages and the new downturn of residential mobility in the US

Abstract

Housing shortages following the global financial crisis have been accompanied by a new, sharp downturn in rates of residential mobility, largely among renters. The Great Recession precipitated major, lingering housing disruptions, with local mobility declining by one-third in the US from 2010 to 2019. Slow construction despite employment recovery and burgeoning numbers of young Millennials led to intensified competition for vacancies. That ‘friction of competition’ is posited to delay moves and reduce overall mobility rates. Questions investigated are how urban area declines in renter mobility are related to slower housing construction than job growth, fewer rental vacancy chains released by home buyers, concentrations of young adults, and affordability. Analysis is with the American Community Survey for the 100 largest metropolitan areas in the US Mobility constriction is a new indicator of declining housing opportunity. Similar outcomes bear investigation in other cities and nations impacted by housing shortages and the shift to renting.