Zoom, Zoom, Zoom Towns

By Comeback Images @ Shutterstock.com

“We joke that it’s becoming a `Zoom town,'” Angelica Webb of Redfin says, referring to the now-familiar video-conferencing platform. Bend, OR, for example, is becoming one.

“A lot of folks are moving to Bend without having ever stepped foot here. They’ve heard good things and want to get out of their cramped San Francisco or Seattle apartments, so they’re coming here and buying awesome, 3,000-square-foot colonial homes.”

The same is true with the migration out of New York City to places like Newport, RI. What it means for restaurants left in the cold is yet to be seen. But it doesn’t have a great feel. Lockdown mandates are picking up steam, especially in blue states. Again.

OK, let’s move on from those “awesome, 3000-square-foot homes” and how obnoxious it sounds and look at what’s happening here. For one, tourist destinations for years have been struggling with retaining customer-facing employees as residents. They’ve been priced out of the market. They live an hour away because it’s what they can afford.

The trend of big money exiting big cities is making small tourist towns full of residents that work via ZOOM. Tourist towns are the new bedroom communities.

The harm being done isn’t measurable yet. But let me share with you two recent experiences I had. In the first, we sat down, and our server said, “You need to put on your mask when I approach you. You need to pull up your mask between bites and sips. And it’s a mandate.” We left. She walked back to the kitchen.

It’s restaurant week in Newport. This is normally a big week for them. We tend to avoid it because it’s so busy. We were out the other night, though, and it was so quiet—empty seats everywhere. I’ve never seen it like this. Stay tuned.

Action Line: Maybe you don’t need that “awesome” home, but you do need to think about escaping the cities. This will be a while.

Liz Lucking reports in Mansion Global:

“I’ve never seen so many New York license plates at open houses in Monmouth County,” Redfin agent Anthony Gonzalez, said in the report. “City folks are coming to New Jersey with New York salaries, and they can get quite a deal here even though competition is fierce. One of my buyers recently lost out on a house because another bidder paid $75,000 over the asking price. Who does that? New Yorkers.”

Indeed, New Yorkers are ditching the state in droves, according to the data.

Almost 47,000 more Redfin.com users looked to leave New York state than move into it during the third quarter, roughly 35% more the same time last year, the report said.

Meanwhile, New York City boroughs account for the three U.S. housing markets that are cooling down the most.

Queens ranked first, followed by Brooklyn and the Bronx. The city saw a greater net outflow of Redfin.com users than any other metro area during the third quarter.

Originally posted November 12, 2020.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West (RIP JB) and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.

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