Most renters moving to amajor metro are seeing increased housing costs. A new study fromYardi's Storage Café analyzed the increased costsfor new renters in major metros and found that 48.8% of newentrants into major metros experience an increase in housing costs.On the other hand, 21.3% of new entrants experience a decline inhousing costs.

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"Almost 50% of the movers to the top metros declared that theyexperienced an increase in housing costs," MariaGatea of Yardi Storage Café, tells GlobeSt.com. "However,that might not be that surprising, as 32% of the people movingwanted larger or better-quality homes or more desirableneighborhoods," . Naturally, this translates into increased housingcosts. It's also worth noting that, in addition, almost 15% of themovers declared they relocated in order to form their ownhousehold, which usually implies getting a larger home."

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The migration patterns are similar across metros. Most moversare migrating from nearby markets, rather than a significant move."People moving to the top metros tend to come from another nearbymetro area. For example, the Los Angeles metro area saw almost45,000 newcomers from the adjacent Riverside-San Bernardino metroarea, while the San Francisco metro area received almost 29,000 newresidents from Metro San Jose," says Gatea. "The Houston and Dallasmetro areas are each other's main source of new residents, withouta clear winner in terms of net migration, as the number of peoplemoving between the two is balanced, at about 16,000 in eachdirection." However, for Atlanta, Miami and Chicago, most newarrivals came from New York City, breaking with the trend.

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Inbound migration has played a significant role in drivinghousing costs up; however, so far, they aren't deterring newentrants into the market. "The metros that saw decades of highinbound migration, such as Los Angeles and New York, are nowdealing with sky-high housing costs that are indeed deterringpopulation growth," says Gatea. "Interestingly enough, inboundmigration to both metros is not slowing down—on the contrary, MetroNew York is first nationally in terms of inbound migration and LosAngeles metro is second, with 417,000 and 360,000 newcomersrespectively in one year."

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However, these markets are also seeing significant outwardmigration as well. "Retaining their residents, on the other hand,is an issue. Even more people are moving out, resulting in negativenet migration of 63,000 in New York's case and 16,500 for LosAngeles," says Gatea. "The population change, which also includesdeaths and births, is also negative for Metro New York and LosAngeles—decreases of 19,500 and 7,200 respectively."

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Interestingly, Gen-X is the biggest demographic moving betweenmetros. "Gen Xers, now at the peak of their professional lives, areopting for more competitive markets where opportunities abound interms of both employment and lifestyle options," says Gatea. "Themembers of Generation X are generally less burdened by student debtthan millennials and register higher household incomes, whichallows them to take on a mortgage. Whether relocating for jobs, tobe closer to family or specifically to get access to better housingand neighborhoods, Gen Xers are generally willing to pay more forhigh-quality, amenity-rich housing and can easily afford all theother costs related to moving."

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.