Fast Company staffer Stephanie Kasriel writes about the four ways that our economy will change in coming years. One of them has big implications for home builders, who are always considering where to build their next project.
The 20th century saw big, cosmopolitan cities boom. The best jobs and top talent were concentrated in a few "first-tier" urban centers like San Francisco, New York, London, Tokyo, Los Angeles, and Paris. If you wanted a job, you had to move to one of those places.
That's already changing. The major urban hubs have largely exhausted their stores of opportunity. The cost of living is now outpacing salaries in many of those places. In Los Angeles, rents are rising twice as fast as inflation ; in San Francisco earlier this year, rents grew a massive 15% . As a result, residents' purchasing power is shrinking.
Kasriel posits that in the next five years, more Americans will live in smaller cities while telecommuting to jobs based in large urban centers.