Recently, there has been a massive migration rate from major cities and metropolitans to the suburbs, rural areas, and other states. As the concept of a remote workplace grows in popularity, many employees no longer see reasons to be close by the physical location of their employer or live close to their various workplaces. Instead, they focused on emigrating out of states seen as declining. This demographic change has huge business impacts on private lenders in the country and the success of their business. Therefore, private lenders need to swing into action to respond to this change. Some key considerations to be made include:
- Focus on Expansion: Private lenders need to expand into states with increased immigration rates, such as Texas, Arizona, Florida, Tennessee, Utah, Idaho and Nevada. In addition, these states have seen an increase in the influx of individuals from conditions such as New York and California. Thus, lending opportunities abound.
- Increase Market Cities: Private lenders whose primary focus has been on urban areas and metropolitan cities alone need to consider secondary and tertiary markets in their respective home states. For instance, there will be much more lending opportunities in nearby suburbs than in the city of San Francisco alone.
- Follow the Capital movement: Private lenders need to follow the money to determine massive opportunities. For instance, Joe Regan and Elon Musk moved out of California; Oracle made a public announcement to move out of California; Goldman Sachs moved some of its offices to Florida and Texas. All of these translates to the movement of top executives and middle-level employees looking to become new homeowners in these new cities and areas, providing tremendous lending opportunities for private lenders.
To read more on the effects of the great suburban migration and its benefits to private lenders, click here.
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