That’s the question raised by a recent post over at new geography. The post tracks the decline of financial services employment in big metro centers like New York and San Francisco, and notes an increase in employment in outlying areas. One hypothesis: the banks are looking for lower cost locations.
Metropolitan areas [in which housing was] rated as affordable (median multiple 3.0 or lower) gained 9,300 financial sector jobs between 2007 and 2012. Metropolitan areas rated moderately unaffordable (median multiple 3.1 to 4.0) gained 2,600 jobs. The metropolitan areas with the most unaffordable housing suffered a net loss in financial sector jobs. Seriously unaffordable (median multiple 4.1 to 5.0) metropolitan areas lost 3,700 jobs. Metropolitan areas rated seriously unaffordable (median multiple 5.1 or higher) lost 35,000 jobs.
This may be a problem for big cities like New York and an opportunity for small cities throughout the US. A trend worth tracking. You can read the full post here.