Key Takeaways
- Smaller cities like Indianapolis, Columbus and Denver are attracting new residents, who are often searching for a lower cost-of-living, Bank of America said.
- The influx could put pressure on rent rates and housing prices if cities don’t add more housing to accommodate the growth, housing experts said.
It may be tempting to pack up your life and head to a city with cheap rent. But first, it’s worth checking how many others are making the same move.
Many Americans are moving in pursuit of a more affordable lifestyle, according to a Bank of America analysis of client addresses and transactions from 2020 to 2025. They’re often relocating to small cities in the same region, such as Indianapolis, Columbus and Denver, the report said. The influx, however, may undercut the lower cost of living that attracted so many to these communities in the first place, housing experts said.
Population growth often puts pressure on rent rates and housing prices as more people compete for homes in the area, said Joel Berner, senior economist at Realtor.com, a listings site…