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How COVID accelerated a shift that could put new cities at the forefront of American life

Our work and our lives may never return to a pre-pandemic normal, and that’s caused for some major shifts in where people are choosing to live in the US.

For the most up-to-date news and information about the coronavirus pandemic, visit the WHO and CDC websites.

Since the onset of the coronavirus pandemic, urban areas across the US have seen changes both big and small — one of the most notable being a population migration out of larger cities like New York and Los Angeles, to smaller cities like Denver and Miami. In fact, according to analytics firm CoreLogic, New York, LA and San Francisco had the most people leave their respective metropolises compared with anywhere else in the country during 2020.

This migration was in motion before COVID-19, but it accelerated as remote work became an option for millions of people, many of whom sought out more space and a lower cost of living.

“We’ve always been a very mobile country. I think if you looked around the world and picked any other country … you wouldn’t find the kind of North-South-East-West trajectories that seem to be very easily taken by Americans and are in fact part of our history,” said Elizabeth Plater-Zyberk, a professor of architecture and the director of the master of urban design program at the University of Miami. “So this is just another episode in that story.”

Across the US, the number of people who made permanent moves was up 3% from March 2020 to February 2021, according to an analysis by Bloomberg. But when you take a closer look at a few of America’s densest and most expensive metro regions, the data paints a different picture, with a larger percentage of the population moving out of those areas. It’s a shift that has had far-reaching impacts on cities both big and small when it comes to urban development, housing prices and traffic flow.

Shift to remote work

As remote work policies spurred many people to change their location during the pandemic, some companies are still trying to figure out how to adapt to this new type of workforce.

At Google, for example, the company announced in June that it had developed a tool for employees to see how their salary might change based on their region. The tool allows employees to request office changes or apply to become fully remote workers, and CEO Sundar Pichai announced plans for 20% of the company to permanently work remotely. Google didn’t immediately respond to a request for comment.

Alex Coffman lived and worked in San Francisco for two years before the shift to remote work allowed him to leave the city for the sunnier skies of Miami. While he says the move wasn’t spurred specifically by the pandemic, he also notes that without the option to work remotely, he may not have been able to relocate.

“A lot of technology companies and sort of high-end financial companies focus on New York and San Francisco labor markets, and that is changing quite quickly … but at the same time, I still believe it would be significantly more complicated for me to find an equivalent job in the Miami labor market,” Coffman said. “A lot of peers of mine sought out roles in New York or San Francisco, and then as soon as they had the capacity to leave [they did] — some of them are in Oklahoma, some live in Washington, some live in Texas. And they’ve essentially kept the jobs that they had as former San Francisco and New York employees.”

Migration from America’s largest cities

Most people who moved during the pandemic stayed within the same state. Despite talks of mass moves to Florida and Texas, most people who moved didn’t go very far. Data shows that the pandemic accelerated an existing trend of more people moving outward to suburbs and surrounding areas of their former cities like San Francisco and New York.

One factor that did affect major cities, especially ones in California, was a decrease in people migrating into the state. California’s population and job growth have both slowed, with many citing concerns about high taxes, the cost of living and heavy regulations. In 2020, over 135,000 more people left California than moved in, the third largest net migration loss ever recorded for the state, according to CNBC.

“Once you were deprived of the opportunities that a fully open Los Angeles, or for that matter, a fully open San Francisco offered you, it was very hard to justify the cost of housing here,” said Michael Manville, an associate professor of urban planning at UCLA and the research program lead of traffic at the UCLA Institute of Transportation Studies.

Migration to smaller cities

People who left California largely moved throughout the Western coastal states. However, people leaving Los Angeles specifically tended to make their way eastward, to places like Las Vegas, Phoenix and even Miami.

“Many cities that might tell you they’ve been languishing economically are experiencing new interests, new residents and businesses,” Plater-Zyberk said.

Florida is one of nine states with no state income tax, a big attraction for those moving out of certain states that have high income tax rates. Almost 330,000 people moved to the state of Florida between April 2020 and April 2021, and experts expect that kind of population growth to continue through 2025. Data from Move.org shows that Florida was the top destination for relocating Americans in 2020.

Like Miami, Denver saw an increase in people moving to the city during the pandemic. But what sets Denver apart as a new destination is its relatively high cost of living.

“Our population numbers have just been growing pretty steadily, and everything that is part of normal everyday life is just a little bit more complicated, a little bit more crowded,” said Andy Goetz, a professor in the department of geography and the environment at the University of Denver.

And it wasn’t just individuals who moved during the pandemic. Several major tech industry leaders pulled out of Silicon Valley altogether. Oracle and DropBox both moved to Austin, Texas; Hewlett-Packard Enterprisemoved to Houston; and Palantir went to Denver.

Elon Musk also left Silicon Valley for Texas last year to focus on two big priorities for his companies: SpaceX’s new Starship vehicle launch site in Brownsville, and moving Tesla’s headquarters to Austin. But Musk did say that in addition to the Texas operations, Tesla “will be continuing to expand” its activities in California as well.

Some cities are even offering tax incentives for companies to move their businesses. Miami-Dade County, for example, offers a myriad of business incentives such as state and local tax breaks for companies relocating to areas that have been designated as having economic development priority.

“There is an influx of tech industry, and there’s also a great attention to incubating businesses. All of a sudden, it’s evident that this is happening in a big way,” Plater-Zyberk said.

Traffic changes

This urban shuffle across the US is also having an effect on traffic patterns.

Brian Taylor, director of the Institute of Transportation Studies at UCLA, told the LA Times that there are two variables when it comes to traffic. The first is vehicle traffic, which is how much people drive. The second is traffic congestion, which is what causes delays.

Congestion occurs when many people are going to the same destination at the same time, and this very thing is seeing a shift.

“We’ve definitely noticed that there has been an increase in the volume of traffic in Denver,” Goetz said. “Vehicle miles traveled have increased significantly. And then with the pandemic, public transit has really dropped off.”

Goetz said that skyrocketing housing prices in Denver are also contributing to increased traffic, as more people are having to find places to live further away from the city center. In contrast, Plater-Zyberk says the influx of new residents to Miami has created greater demand for a more walkable city.

“You know, if you were to drive west to the western reaches of South Florida, you would see pockets of walkable and less auto-dependent urbanism,” Plater-Zyberk said. “It’s definitely changed, I think, largely by remote work.”

In bigger cities like Los Angeles, the once jaw-dropping empty freeways during COVID’s early days have filled right back up with cars again.

“Right when the pandemic began, and California first entered a lockdown, traffic just plummeted to levels we have probably not seen in 100 years,” Manville said. “And right now, with something close to, but of course not quite full reopening, we see congestion levels and traffic levels that rival pre-pandemic levels. So things have come back pretty fast.”

Although the infamous Los Angeles traffic is pretty much back to a pre-pandemic norm, Manville says emptier city streets during the coronavirus brought into sharp focus just how unsafe the city’s street networks are.

“It was very telling that early in the pandemic in California, you saw traffic crashes go down, right, because the typical crashes are just caused by vehicles being in close proximity to each other, but fatal crashes go up, because fatal crashes are caused by speed,” Manville said.

Public transit changes

A shift in the use of public transit has also played a role in changing traffic patterns in big cities. In New York City, the pandemic profoundly disrupted the Metropolitan Transportation Authority, throwing the largest public transit system in the US into a desperate financial situation.

In Los Angeles, Manville said public health agencies advised people not to take public transportation during the early months of COVID. “I think there’s a hangover from that, where people still really worry, perhaps rightly, perhaps wrongly, that their riding public transportation might put them at risk of COVID,” Manville said.

For many remote workers, especially those like Coffman who’ve moved during the pandemic, a return to the old ways of Monday through Friday office life isn’t very appealing.

“I will remain a remote worker, I believe, for the indefinite future. And I think that there is a really good reason to be in the office, which is that it’s of course lovely to see people. And I could return to the office, but I don’t have to. And I really don’t want to, to be honest,” Coffman said.

He also said that he has no regrets about leaving San Francisco for Miami but aknowledges he knows people who stayed where they were during the pandemic and love their city.

“I’ve had family members who reside in the city of New York, didn’t leave, stayed in New York, and then went right back to the office when it opened. And ultimately, they love the city of New York, and it’s why they remained,” he said.

In the end, the pandemic may have accelerated the timeline of this urban shuffle across the US, but it’s also a complicated issue that can’t be easily pinpointed or defined. What is clear is that a good amount of people are on the move — whether it’s to live in a more affordable city, be closer to the outdoors or just for a change of scenery. And it’s not slowing down anytime soon.

Technologies

Trump asserts no regret over initiating Iran conflict while U.S. intensifies economic sanctions

Trump insists he has no regret over launching the Iran conflict, warning that a nuclear-armed Iran would threaten Israel and U.S. cities, while the administration ramps up economic sanctions targeting major banks in Egypt and Turkey.

U.S. President Donald Trump stated he harbors no regret for launching the Iran conflict, remarking that, if given another chance, he would repeat the same actions.

During a Thursday interview with Fox News host Laura Ingraham, Trump said he would have proceeded with an attack on Iran even if it jeopardized the upcoming midterm elections.

Ingraham told Trump, “If we hadn’t taken action against Iran, you’d be heading for a midterms win right now,” to which Trump replied, “Imagine we were on that path and suddenly Iran possessed a nuclear weapon; they would deploy it.”

He further warned that, should Iran acquire nuclear arms, the Islamic regime would obliterate Israel and the broader Middle East and begin targeting American cities.

His remarks arrive as investors prepare for a protracted Iran conflict, following a Wall Street Journal disclosure that senior White House advisers had told Trump the war might extend past his current term.

Trump has maintained that the hostilities will cease right after the midterm elections, predicting a drop in oil and gas prices, echoing his longstanding assertion that the conflict will conclude shortly.

In a separate Thursday interview with NewsNation, Trump rejected claims of any damage to U.S. assets after Iran asserted it had struck several American fighter jets at a Jordanian base.

“No damage. Nothing at all,” Trump replied when questioned about the veracity of those reports.

Mounting economic pressure

Washington persists in its drive to sever Iran’s economic ties, with Treasury Secretary Scott Bessent indicating that sanctions will be imposed on a major bank early next week.

“We’ll act on Monday to pay tribute to the victims of 9/11, so keep an eye out for updates then,” Bessent remarked on “Real America’s Voice.”

Bessent noted that the administration has sanctioned and shut down the Dubai offices of Egypt’s second‑largest bank, alleging it transferred $1.8 billion to Iran. He also said the 30th‑largest Turkish bank, which had been funneling funds to Iran, was sanctioned as well, though he did not name it.

Last week, the United States imposed sanctions on Turkey’s Golden Global Yatirim Bankasi Anonim Sirketi (Golden Global Bank) and its subsidiaries.

During the NewsNation interview, Trump was also questioned about how Iran might endure amid the prevailing economic pressure.

“I doubt they can withstand it,” Trump said. “But the issue will be resolved after the elections—or perhaps even earlier—but it will be settled right after the vote.

Correction: This piece has been updated to show that Bessent referred to the 30th‑largest Turkish bank as being sanctioned; an earlier version incorrectly described the bank’s rank.

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Technologies

Trump says he has no regrets about starting the Iran war as U.S. dials up economic pressure

Speaking to Fox News presenter Laura Ingraham, Trump said that he would have attacked Iran despite the impact on the midterm elections.

U.S. President Donald Trump said he has no regrets about starting the Iran war and added that “If I had it to do again, I would do exactly what I did.”

Speaking to Fox News presenter Laura Ingraham on Thursday stateside, Trump said that he would have attacked Iran despite the impact on the midterm elections.

“If we hadn’t done Iran, you would be cruising to midterms victory right now,” Ingraham told Trump, to which Trump replied “supposing we were cruising, and all of a sudden Iran has a nuclear weapon. They would use it.”

He added that if Iran had a nuclear weapon, the Islamic Republic would “wipe out” Israel and the Middle East, and start hitting U.S. cities.

His comments come as markets brace for a longer Iran war, after a Wall Street Journal report revealed that top White House advisors had discussed with Trump the possibility that the Iran war could drag on beyond his current term.

Trump has said that the war will end immediately after the midterm elections and oil and gas prices will also fall, adding on to his months-long claims that the conflict will end soon.

In separate comments to NewsNation on Thursday, Trump denied reports that there was any damage to U.S. assets, after Iran claimed it had hit multiple U.S. fighter aircraft at a base in Jordan.

“No damage. No nothing,” Trump said, when asked if there was any truth to the reports.

Economic pressure

Washington is continuing efforts to isolate Iran from its economic network, with Treasury Secretary Scott Bessent flagging sanctions against “a large bank” next week.

“We’re going to do it on Monday because we want to honor the memory of our fallen citizens on 9/11. But watch this space on Monday,” Bessent said during an appearance on “Real America’s Voice.”

Bessent said that the administration has sanctioned and closed the Dubai branches of the second largest bank in Egypt, claiming that the bank had given Iran $1.8 billion dollars. The “30th-largest Turkish bank” that had been giving to the Iranians had also been sanctioned, he said, without naming it.

The U.S. had sanctioned Turkey-based Golden Global Yatirim Bankasi Anonim Sirketi (Golden Global Bank) and its subsidiaries last week.

Trump, in the NewsNation interview, was also asked how Iran could continue holding out under the current economic pressure.

“I don’t know that they’re gonna be able to hold out,” Trump said. “But it’ll get settled after the elections. Or maybe sooner. But it’ll get settled right after the election.”

Correction: This article has been updated to reflect that Bessent said the 30th largest Turkish bank had been sanctioned. An earlier version misstated the bank’s ranking.

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Technologies

U.S. diesel price tops $6 per gallon, a record high as Ukraine and Iran wars ripple through economy

U.S. diesel prices hit their highest level ever as fuel supply disruption stemming from the Ukraine and Iran wars lifts transportation costs.

U.S. diesel prices hit $6 per gallon on Friday for the first time ever, as fuel supply disruptions triggered by the Ukraine and Iran wars raises transportation costs across the entire economy.

Truckers and farmers are paying about 63% more to fill up their semis and tractors than they did at this time last year, according to data from AAA. The average price nationwide is now about $6.06 per gallon.

Prices are even higher in California, the biggest agriculture state in the U.S., at $7.98 per gallon.

Fuel costs are rising as crude oil prices have surged in response to a sharp escalation in fighting between the U.S. and Iran this month. U.S. crude oil futures topped $100 per barrel on Thursday for the first time since May. The contract has gained about 20% in September.

Diesel is the real lifeblood of the economy even though consumers tend to pay more attention to retail gasoline prices, said Bob McNally, president of Rapidan Energy, in an interview with CNBC’s “The Exchange” on Tuesday.

Higher diesel prices are passed down to consumers in what they pay for food, consumer goods and energy. Diesel fuels the trucks, trains and ships that bring goods to market. It powers the machinery that farmers use to plant and harvest food. And it heats homes and generates electricity in some cases.

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“It’s the more insidious, more costly, and more impactful fuel,” McNally said. “As we climb higher, it is a real concern.”

Diesel prices at these levels will be a “silent killer” for the economy, said Patrick De Haan, head of petroleum analysis at GasBuddy, in an interview with CNBC’s “Power Lunch” Tuesday.

Gasoline prices, meanwhile, have never been this high this late in the year, De Haan said. Prices at the pump hit a Labor Day record of $4.15 per gallon earlier this week. Americans are spending about $700 million more per day on gas and diesel than they did a year ago, the analyst said.

“There’s sticker shock there for consumers,” De Haan said.

Fuel costs are rising as the Iran and Ukraine wars have disrupted global supplies. Kyiv has pounded Russian refineries, forcing Moscow to ban diesel exports. Iran and its militant Houthi allies in Yemen have also hit the refineries of U.S. Gulf allies. Fuel exports through the Strait of Hormuz are constrained due to the Iranian attacks on tankers.

The wars in Eastern Europe and the Middle East have shut down refineries with about 5 million barrels per day of capacity, said Valero Chief Operating Officer Gary Simmons on the U.S. refiner’s July 30 earnings call.

The world has lost nearly 8% of its diesel supply with little spare refining capacity available to make up the shortfall, said Andy Lipow, president of Lipow Oil Associates, in a Wednesday note.

Rising diesel prices pose an “enormous challenge” for the Trump administration, said Helima Croft, head of global commodity strategy at RBC Capital Markets, in a Sept. 4 interview with CNBC’s “Power Lunch.”

“U.S. refineries are running at 98% utilization rates — there is just no spare capacity,” Croft said.

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