The May 2020 jobs report highlighted the vast regional differences in economic activity in the COVID landscape. Cities in the Sun Belt continue to outperform those in the Midwest and Northeast. The longer these differences persist, the more likely it is that people and businesses migrate south.
Rust Belt cities in the Midwest and Northeast are experiencing depression-level job losses while the Sun Belt has been left relatively unscathed. These contrasts have been masked to date by generous fiscal stimulus programs. However, these varying economic prospects will result in population and business migration to the Sun Belt. Real estate growth and capital will follow suit.