The drops in rents we have seen in the past year have mostly happened in expensive markets where renters have been less likely to be burdened. Rents in markets that are both more affordable and have high rate of rent burden, have actually risen.
While the pandemic may have shifted some migration patterns, there is clearly still demand to live in Washington State, and the lack of home-building will ensure that prices continue to rise.
The entire theory of spatial equilibrium calls into question the wisdom of setting national wage rates. Wages reflect the value of work, but also the relative cost of living in a place.
The methodology discounts high costs and thereby rewards the "best states if you can afford to live there." No surprise that Washington aces this test.
This is not a story of flight to affordability. Both high priced and more affordable market areas can be seen on the top and bottom of the list. The Eastside is generally favored in this list, but not all parts. More affordable inner suburbs like West Hill and Des Moines are doing well, while Shoreline and Lake Forest Park are not doing as well.
The unemployed, who really needed the money, probably spent that extra benefit, while everyone else simply stuck it in the bank. The personal savings rate rose to 20.5 percent.