The City vs. The Suburbs – North Jersey
Is it time to sell your house fast and move into the City?
You can drastically notice that difference in the city these days. Much more vibrant and active than it has been in the past. . In fact, this is more than a feeling; it’s the verified truth.
In 2013 the U.S. Census Bureau reported that the population of New York City reached a record high of 8.405 million people.. Additionally, the number of people working in New York City–many of whom come in from the suburbs every day. These increases displays a national pattern toward re-urbanization that is being driven by the “millennial generation”. Millennials form the generation born between the early 1980s and the early 2000s. This age group is now about to enter the workforce in significant numbers. They are the largest population to enter the labor force since the baby boom generation born in the 1950s and 1960s.
One characteristic of the millennial generation is that they really enjoy living and working in cities. According to a recent survey by Nielsen, millenials “are currently living in these urban areas at a higher rate than any other generation, and 40 percent say they would like to live in an urban area in the future.” As they are entering the workforce, they are altering the way companies appear at where they locate. One consequence has been a shift in job growth away from suburbs to cities.
In New York, where we can look at employment trends in both the city and the suburbs, the pattern has been impressive. From 1992 to 2004 employment in the New York metropolitan area (the city plus the suburbs of Long Island, Northern New Jersey and Westchester, Putnam and Rockland counties) improved by roughly 830,000 jobs. Approximately 215,000 of those jobs were in New York City and 615,000 were in the suburbs. Since 2004, the trend has completely reversed. From 2004 to 2014 there have been a supplemental 500,000 jobs created in the metropolitan area. Approximately 495,000 of them were in New York City, with only 5,000 jobs created in the suburbs over the past decade.
The next generation of workers wants to live in cities and the businesses that want to tap into that labor force are following them. For the commercial real estate industry. this means the demand for office space will grow much more strongly in central business districts over the next several years at the expense of suburban markets.