American citizens used to be highly mobile, criss-crossing the country to pursue better jobs and a better life-style. They also used to move a lot, even in their own communities, moving from a small “start-up” home to ever-bigger houses as their families grew and their incomes increased.
No more. Economists are worried that the nation’s storied dynamism is fading. And that the housing market seems to be grinding to a halt. But is this altogether a bad thing?
Here is how they begin:
Americans are stuck in place.
People are moving to new homes and new cities at around the lowest rate on record. Companies have fewer roles for entry-level workers trying to launch their lives. Workers who do have jobs are hanging on to them. Economists worry the phenomenon is putting some of the country’s trademark dynamism at risk.
In the 1950’s and 1960’s, they report, one out of five Americans (20%) moved every year. For the last three years, only 7.8% did, the lowest since experts began keeping track in 1948.
There has also been a 47% drop in the number of people moving within their own county, resulting in a dramatic slow-down in local housing markets.
Why is this? A big reason is what is being called “golden handcuffs.” People who have a decent-paying job want to hang onto it, rather than risk unemployment. People who have a house with a low-interest mortgage don’t want to trade that for a more expensive house at today’s sky-high interest rates. They are handcuffed, not feeling free to pursue another job or buy a better house. But the handcuffs are “golden”: they are doing well, and they don’t want to risk that.
The article explains the consequences of Americans being “stuck in place”:
For generations, Americans have chased opportunity by moving from city to city, state to state. U.S. companies were often quicker to hire—and to fire—than employers in other parts of the world. But that defining mobility has stalled, leaving many people in homes that are too small, in jobs they don’t love or in their parents’ basements looking for work. . . .
This immobility has economic consequences for everyone. The frozen housing market means growing families can’t upgrade, empty-nesters can’t downsize and first-time buyers are all but locked out. When people can’t move for a job offer, or to a city with better job opportunities, they often earn less. When companies can’t hire people who currently live in, say, a different state, corporate productivity and profits can suffer.
One could argue, though, that American culture has been too dynamic, that it is healthy for people to settle down in one place.
Having to pay a smaller proportion of your income for housing frees up household income for other things. When you stick around in your workplace, you may have the opportunity to rise to higher positions within the organization. At any event, people who work together for a long time can form deep relationships with each other and develop a sense of community on the job.
In our time of loneliness, alienation, and isolation, human beings need to put down roots. This ties in to the increasingly popular philosophy of localism.
And with the doctrine of vocation. Not that vocation means that you have to stay with one economic occupation your whole life–you may be called to another one–but it supports long-term commitments. Not moving around so much allows for getting to know your neighbors better, whom you can then love and serve.
Keep in mind, though, that circumstances change, sometimes forcing your hand, whether to take a new job or to move. Such things are not always within our power. Sometimes they are, but we can see God’s hand and God’s calling in opportunities, new ventures, and new moves (as Abraham discovered).
Do any of you have experience with this–with sticking around instead of moving, or moving instead of sticking around–that would shed light on these issues?
Illustration: Handcuffs Background [Golden Handcuffs] by 2happy via Stockvault, Public Domain
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