Leaving the Big City
Millions Flee Metropolitan Areas
By Daniel Muniz

It is no secret that for more than a decade so many people have been fleeing the nation’s largest cities. This urban flight has been an amazing dynamic but it should come to no surprise that plenty of residents have been abandoning their cities for years. Skyrocketing housing costs as well as employers finding new locations at cheaper sites have contributed to the decline of large metropolitan areas.

And today, what were once sleepy small and medium sized cities are now teeming with red hot economic activity as the demographics of this country continues to change. In addition to the soaring economic growth, the smaller metropolitan areas offer what the big city inhabitants are looking for; more jobs, more space, cheaper housing, and a lower cost of living while avoiding the problems of crowded urban settings.

In addition, the exurbs, the places beyond the fringes of suburbs have also exploded in growth. As a result, the exurbanites are now being coveted by advertisers and politicians.

Even rural areas that have been void of growth are now attracting new residents.

Consequently, no longer are big corporations and industry confined to the wiles of big city life.

For generations, corporate headquarters and big industry have been synonymous with big cities like Los Angeles, Chicago, and New York City. But that is no longer the case. For years, employers have been relocating their headquarters and operations to places where they can do business more freely without the specter of high taxes, hostile municipal governments, and coercive unions.

As a result, people have been going to where the jobs are at.

Although affordable housing plays a huge factor in the population shifting to different parts of the country, the big picture is that people also want to live at where there is ample employment and opportunity. The bottom line is that you cannot move to a new a place of residence in a different city or state unless there are already jobs available in order to support your rent or mortgage payment.

And historically, some of the country’s most populous states, California, New York, and Illinois are also some of the most regulated places that are hostile to free enterprise. The antagonistic business climate of the densely populated states and cities makes it difficult for companies to thrive and expand. And without the private sector prospering, a city cannot experience substantial and sustained economic growth.

Unfortunately, some people ardently believe that it is the government, not the private sector that is the catalyst for prosperity. As a result, these opponents to the free market have no problem stifling commerce with red tape and excessive regulation because they see the government as the primary source of economic growth. And they are unperturbed by the overwhelming factual data of urban flight.

However, it is the states and the metropolitan areas that are the most business-friendly which are also the places that are booming. And it has been happening all over the country especially in the most unlikely of places.

For instance, South Dakota is definitely a state that is out in the boondocks with little else than agriculture as its backbone. Although agriculture still plays a dominant role in its economy, the state now has growing list of corporate clients that have established their operations there. The land is cheap, the cost of living is very low, and the business environment is affable to economic activity. This right combination of elements began to attract more companies to South Dakota which in turn transformed its economy.

In contrast, take a look at New York state. In the nation’s 100 fastest growing counties, that state doesn’t have a single one of them. In fact, New York City continues to lose residents, like over 200,000 from 2000 to 2004.

In Los Angeles, mortgagers have finally begun to unveil the 50 year mortgage. For the City of Angels, as well as for other expensive metropolitan areas, the 50 year note is on its way to be being the only affordable way to purchase a house, although you may not be alive for the last payment.

And what has also helped propel this demographic shift is that many big businesses have finally shucked their big city snobbery. For the longest time, it was common knowledge that only the large metropolitan areas had the good paying jobs. Likewise, many corporations felt that they could only operate in the confines of the big city without even considering other factors. That too is no longer the case.

For instance, big manufacturers are now looking at Southern states to build factories. The industrial areas of the Northeast no longer have the allure or the incentive to attract big industries. Large financial institutions are going everywhere else except the big cities for their operation centers.

So far the biggest beneficiaries of the migrating population have been Florida, Nevada, and Arizona. They are now the fastest growing states.

And it is not just middle class white residents but also Hispanics and African Americans that are leaving the big cities. Economic opportunity simply cuts across all social and cultural lines.

Will this urban flight ever end?

In the short term, the answer is no. But if the big urban areas want to maintain their viability for the long term, they must be able to make their cities affordable to the homeowner and viable to the private sector.

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