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Moving From Rural Areas to the City

Rural areas have not quite kept pace with metro areas following the recession, according to a new report from Trulia. According to Trulia, many metros have seen robust growth in jobs and home prices, while rural areas have stagnated.

The report explains that this trend began even before the recession, but the divergence between rural and urban areas has increased in recent years. "Economic trends in the aftermath of the housing crisis seem to have intensified the conditions, pushing people away from rural areas and toward larger employment centers,” the report states.

One reason for the spread may be the tepid recovery of manufacturing and increasing automation in the agricultural sector. The employment sectors that have seen the most growth are professional and nonprofessional services that cluster in larger metro areas. These areas have also seen strong job growth.

This has put upward pressure on housing demand in metro areas while reducing it in rural areas. Nationally, the population has grown by 1.6 people for every building permit issued. However, in the 100 largest metros, 1.9 people have been added for every permit issued.

Some metro areas have seen even more extreme growth. For example, Fort Lauderdale, Florida, has seen 4.3 people added per permit issued, while Oakland, California, has seen 3.8 new people per building permit issued. Home values in these metros have more than doubled.

On the opposite end of the spectrum,  Raleigh, North Carolina, and Austin, Texas, have added 1.8 and 2.0 people per permit issued and home prices have appreciated a more modest 37.8 percent and 57.2 percent, respectively.

This means many areas have experienced affordability issues, however. Trulia states that construction has helped keep prices in check. According to data from the Census Bureau, this year alone, construction has seen a trend upward in employment, up by over 23,000 in August, and up by 297,000 over the year.

Find the report from Trulia here.

About Author: Seth Welborn

Seth Welborn is a Harding University graduate with a degree in English and a minor in writing. He is a contributing writer for MReport. An East Texas Native, he has studied abroad in Athens, Greece and works part-time as a photographer.
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