Its already happened to a certain extent. Most expensive American cities have some core industry: Sf = tech, NYC = finance, LA = movies, Chicago = commodities.

Its already happened to a certain extent. Most expensive American cities have some core industry: Sf = tech, NYC = finance, LA = movies, Chicago = commodities. This clustering of talent attracts even more talent, keeping the city’s economic engine humming along. Since the housing stock and transportation takes longer to evolve, the big cities see higher and higher rents. Usually economic downturns stabilize things a little bit. But we’re now in the midst of the longest economic expansion ever seen in the history of the US.