Price of housing making America less dynamic, more inclined to stay put?

Price of housing making America less dynamic, more inclined to stay put?
The new face of poverty?

[Ed. – There’s probably something to this, although the one thing Thompson doesn’t mention is bound to also be an important factor: welfare handouts.  In the second-to-lowest tier of the income quintiles, a lot more people don’t move toward jobs today because they don’t have to.  They know to the penny how much they can get in welfare handouts right where they are — and it’s substantial.

[That said, keep in mind about the price of housing that it is mainly a function of government regulation, which has a dramatic effect on both land use — and hence the cost of land — and what it costs to build a house.  Regulation is the single biggest influence driving up the price of housing across the board.]

Americans today are strangely averse to change. They are less likely to switch jobs, or move between states, or create new companies than they were 30 years ago. In economist-speak, “the U.S. labor market has experienced marked declines in fluidity along a variety of dimensions.” …

Why are Americans stuck in place—and why are these stuck Americans less likely than their forebears to switch jobs and start companies? …

Between the 1970s and 2010, the rate of Americans moving between states fell by more than half—from 3.5 percent per year to 1.4 percent. … Fewer Americans moving toward the best jobs and starting fewer companies could lead a less productive economy. …

People aren’t moving toward productivity. They’re moving toward cheap housing.

Can housing costs be blamed for the decline in geographic mobility? Yes, they can. …

[T]oday, not only are families moving less, but also they’re moving in the opposite direction, from rich areas to poorer areas, mainly because of housing costs.

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