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Super travelers, who travel over 90 minutes any way to work, have emerged as a growing trend in the United States, saving money by living in desirable, remote locations, impacting the US economy.
In 2012, a paper by NYU researchers Mitchell Moss and Carson Quing arguing that “the twenty-first century is emerging as the century of the 'super-traveler'”. workforce shifts that have since accelerated due to the pandemic and the rise of remote work, Moss and Quing pointed to advances in the Internet and mobile communications along with sharp differences in housing costs between affluent and lower-cost cities.
Supercommuters can take advantage of higher wages in one region and lower housing costs in another by using travel corridors.
Sydney Bennet, a senior research associate at The Apartment List, the data presented this suggests that super commuters are becoming more common: the proportion of super commuters increased 15.9% from 2.4% in 2005 to 2.8% in 2016. The share of super commuters is highest in expensive metros with strong economies – New York, San Francisco, Washington, DC, Atlanta and Los Angeles – and their surrounding areas.
Related: Super Commuting is on the rise, Here's why and how it works
Thousands are choosing the long way to work
If we break down super-travelers by their income, we also find that they are more likely to come from the middle class (less than $40,000 a year) than individuals in the local labor pool. In each of the top ten major commuter counties, high-income individuals (earning more than $40,000 a year) represented a smaller percentage of super commuters than the entire workforce.
Using the most up-to-date data, we can tackle a list of states with the highest percentage of super travelers using the 2018 five-year estimates from the US Census Bureau. States are ranked by the percentage of workers with a commute time of 90 minutes or more.
Thus, New York City is the travel capital of the country. Only 5% of American commuters use public transportation, but in New York City, more than 30% choose subways, trains and ferries. Each day, commuters from the outer boroughs, as well as from New Jersey, Long Island and Connecticut, double Manhattan's population for the day.
One of the roots of this constant travel lies in the higher cost of living, seen primarily in cities like New York, which recently data ranked as least affordable. To live comfortably in New York, a family of four must have an annual income of $318,406. However, a single New Yorker without children needs to make at least $138,570 a year to maintain a comfortable lifestyle. Research shows that just to cover the necessities, a single New Yorker needs about $70,000. However, just over the border in New Jersey, you can find seats for around $2,310, and in Connecticut, it's even cheaper at around $1,816. Thus, super travel saves money on accommodation.
Besides economy, another big reason for super trips is a better way of life. Let's say that a worker is expected to be at the workplace three times a week. By commuting two days less, one can live 40 minutes further from the office than before. This additional radius gives many more options. For example, if you work in downtown San Francisco, you might choose somewhere near a Napa vineyard instead of living in the suburbs of Novato.
Americans are willing to pay their rent, sometimes extra, but their perfectly reasonable desire is to get more comfort for a higher price, not the other way around. Therefore, they choose better properties further from the city instead of renting ridiculously small units in the city center.
Related: “Supercommuter” travels from Ohio to New York Office Weekly
A potential threat to the US real estate market
Now, let's take a closer look at how travelers affect the real estate market. For example, the price of a studio in NYC three years ago was about $2,225, and in 2023, it increased by 57.3% ($3,317). A year later, this increase was only 5.53% of the already mentioned average of $3,550. Demand drives the real estate market, just like any other market.
Similar patterns appear in major cities across the country. For example, in Los Angeles, one evaluated 300,000 super commuters from the surrounding counties contribute to an annual rental loss of more than $10 billion (roughly), with an average monthly rent of $2,800. The rental rate increase decreases by about 10.69% from $3,135 in January 2023 to $2,800 in January 2024.
Related: Check out these Swiss commuters swimming a river to work
Super travelers in Washington, DC, CONTRIBUTING with an annual rental loss of about $2.5 billion, assuming an average rent of $2,500 and about 83,000 super commuters. This year's annual rent has decreased by 1.91% compared to the previous year.
Therefore, it is logical to conclude that the demand is decreasing. As the recession gains traction, more people are reorganizing their budgets, and one of the easiest ways for them to save money is by ditching the exorbitant rent in favor of more affordable options.