A New Wave of Unexpected Resident Departures Hits California

January 8, 2024

A new wave of unexpected resident departures hits California according to a new Redfin report documenting the exodus.

“Los Angeles is no longer a destination. Instead, people are fleeing the metro in droves,” according to a new Redfin report.

Throughout November, nearly 24% of American homebuyers were looking to move to a new metro area, the real estate brokerage found.

However, Los Angeles was not at the top of the list, instead becoming the area residents were most likely to move away from.

“That marks the first time on record it has been the number one place homebuyers are leaving, and the first time in over two years the Bay Area has dropped out of the number one spot,” Redfin said.

Initially, Americans started fleeing both California areas when remote work became standard during the COVID-19 pandemic.

No longer tied to cities with high costs of living, many Americans settled down into new and more affordable locations.

Behind Los Angeles in terms of top locations Americans left in November were San Francisco, New York City, Washington, D.C., Seattle, Chicago, Boston, Philadelphia, Detroit and Denver.

All 10 cities have historically boasted large populations and expensive housing.

While Los Angeles saw 26,100 residents leave, even smaller cities like Denver saw a hefty 2,000 people say goodbye.

In Los Angeles, specifically, residents are at odds with high costs of city living while dealing with the most unaffordable year on record, according to the report.

“It came as no surprise to me that Los Angeles figured prominently among the cities where people are moving out,” Pete Evering, the business development manager at San Diego-based Utopia Property Management, told Newsweek.

While the exodus from the Bay Area has mostly revolved around tech workers leaving the city because of remote jobs, Los Angeles has a different story, Evering said.

“What’s interesting is that the outmigration from Los Angeles didn’t slow down as much,” Evering said.

“It tells me that the outmigration trend from the city may be a more complicated one, with people motivated by a host of other factors other than remote work.

“What sticks out to me is really the affordability crisis. People are moving out simply because owning or renting a property in Los Angeles is far out of reach for most people.”

Also Read: Florida Now Has Massive Departures As Hundreds of Thousands Leave

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A massive bank will now close locations nationwide to consolidate its branch network, part of a $750 million cost-cutting effort.

Truist CEO Bill Rogers announced that 72 locations would be affected, or 3.5% of its branch network, by March.

The firm said it sent customers a letter in mid-December explaining the branch closures and identifying the next nearest location at which they can bank.

A Truist spokesperson told American Banker that nine branches are set to close in North Carolina and seven in the Washington, D.C., metropolitan area.

The firm is expected to shutter branches in Alabama, Georgia, Kentucky, Maryland, North Carolina and West Virginia, the publication reported.

The Atlanta Business Chronicle reported that the lender will close eight branches in Georgia, including four in Atlanta.

“For the vast majority of branches that are closing, clients will have access to a branch about two and a half miles away on the average,”

Brian Davis, director of consumer and small business banking communications, said in a statement.

“In response to our clients’ evolving preferences, these decisions create additional opportunities for investment in our digital capabilities.”

Following the closures, Truist will operate 1,900 branches and 2,900 ATMs, Davis said.

“We understand that in-person service and caring conversations are still important to many of our clients,” Davis said.

Truist CEO Bill Rogers announced plans to consolidate the bank’s branch network in September, part of the firm’s efforts to shave $750 million off gross costs over the next 12 to 18 months.

This is a developing story — for more banking news and updates like this, opt-in for push notifications.

Also Read: A Massive Bank Now Closes Several Branches in Florida

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