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People commuting greater than 90 minutes each way is a growing trend in the United States. It allows them to get monetary savings by living in attractive, distant locations while also contributing to the American economy.
In 2012, an article was published by scientists from New York University, Mitchell Moss and Carson Quinga he argued that “the 21st century is emerging as the century of the ‘supercommuter.’” Anticipating labor market changes that have since accelerated resulting from the pandemic and the rise of distant work, Moss and Quing pointed to advances in the web and mobile communications, in addition to the wide differences in housing costs between wealthy and lesser cities.
Rapid commuters can expect higher wages in one region and lower housing costs in one other by using commuting corridors.
Sydney Bennet, Senior Research Associate at Apartment List, presented data suggesting that supercommuting is becoming more common: the share of supercommuters increased by 15.9% from 2.4% in 2005 to 2.8% in 2016. The share of supercommuters is highest in and around expensive metropolitan areas with strong economies—New York, San Francisco, Washington, D.C., Atlanta, and Los Angeles.
Thousands of individuals take the long strategy to work
If we divide super commuters by their income, we also reveal that they are more more likely to come from middle-class backgrounds (lower than $40,000 per 12 months) than those from the local employment zone. In each of the ten major central counties, high-income commuters (earning greater than $40,000 per 12 months) made up a smaller share of super commuters than the entire workforce.
Using newer versions data, We can provide a list of states with the highest percentage of super commuters, using the U.S. Census Bureau’s 2018 five-year estimates. States are ranked by the percentage of employees whose commute time to work is greater than 90 minutes.
So New York is the commuting capital of the country. Only 5% of American commuters use public transportation, but in New York over 30% select subways, trains and ferries. Daily commuters from the outer boroughs, in addition to from New Jersey, Long Island and Connecticut, double Manhattan’s population for a day.
One of the reasons for constant travel is the higher cost of living, seen mainly in cities like New York, which has recently data classified as the least reasonably priced. To live comfortably in New York City, a family of 4 must have an annual income of $318,406. However, a single New Yorker without children must earn at least $138,570 a 12 months to take care of a comfortable lifestyle. Studies show that to cover basic needs alone, a single New Yorker needs an estimated $70,000. However, just across the border in New Jersey, you’ll find places for around $2,310, and in Connecticut it’s even cheaper, around $1,816. So a super commute saves money on housing.
Besides the economy, one other big reason for a super commute is the improved lifestyle. Let’s say you have to be at work three days a week. By commuting two days less, you possibly can live 40 minutes farther from the office than you probably did before. That extra radius opens up a lot more options. For example, if you’re employed in downtown San Francisco, you may decide to live near a Napa winery as a substitute of living in the suburbs of Novato.
Americans are willing to pay rent, sometimes much more, but their completely legitimate desire is to get more comfort for a higher price, not the other way around. That’s why they select higher properties further out of town, as a substitute of renting ridiculously small units in the center.
The Looming Threat to the US Real Estate Market
Now let’s take a closer look at how commuters are affecting the real estate market. For example, the price of a studio in New York City three years ago was around $2,225, and in 2023 it increased by 57.3% ($3,317). A 12 months later, the increase was only 5.53% of the aforementioned average of $3,550. Demand drives the real estate market, similar to in any other market.
Similar patterns are emerging in major cities across the country. For example, in Los Angeles, estimated 300,000 super commuters from surrounding counties contribute to an annual rent lack of over $10 billion (roughly), with an average monthly rent of $2,800. Rent growth declines by roughly 10.69% from $3,135 in January 2023 to $2,800 in January 2024.
Washington DC Super Commuter, participate in something to an annual rent lack of about $2.5 billion, assuming an average rent of $2,500 and an estimated 83,000 super commuters. This 12 months’s annual rent is down 1.91% from the previous 12 months.
So it makes sense that demand is falling. As the recession gains momentum, more and more people are reorganizing their budgets, and one of the easiest ways to get monetary savings is to ditch exorbitant rents for cheaper options.