There’s one thing that constantly confuses me with the housing crisis, which is why more people aren’t moving to other cities (or at least a lot faster than they currently are). Perhaps my mentality is different than most, but if I can improve my economic situation by moving elsewhere I will. I know for some people it is difficult to move because of family ties or costs associated with moving, but I would have thought this would be a small minority of people, not the majority of them. Or are most people so rooted to where they grew up that they don’t want to leave?
The other thing that confuses me is why companies aren’t moving either. It’s been a long time since a "new" city was created, but we have plenty of land available, and a lot of it is in pretty (but not natural park) locations. Is there that much of a network effect with talent being in one region that companies would rather pay a 4x compensation premium than relocate to new or lower cost locations? Are there any examples of big companies that have relocated their HQ to lower COL locations and then failed because they couldn't attract talent to move there, or is it just conjecture that this would occur?
The other thing that confuses me is why companies aren’t moving either. It’s been a long time since a "new" city was created, but we have plenty of land available, and a lot of it is in pretty (but not natural park) locations. Is there that much of a network effect with talent being in one region that companies would rather pay a 4x compensation premium than relocate to new or lower cost locations? Are there any examples of big companies that have relocated their HQ to lower COL locations and then failed because they couldn't attract talent to move there, or is it just conjecture that this would occur?