So
many people are leaving the horrible and corrupt Bay Area that U-Haul is
jacking up prices
By Michelle
Robertson, SFGATE
Photo:
NoDerog/Getty Images
A
row of U-Haul trucks and trailers are parked in a storage
lot.
Rent
a moving truck from Las Vegas to San Jose and you'll pay about $100. In
the opposite direction, the same truck will cost you 16 times that, or
nearly $2,000.
What
accounts for the difference? The simple laws of supply and demand, says
economist Mark J. Perry. With so many people leaving the Bay Area, there
are not enough rental trucks to go around. Perry, a University of
Michigan professor, published his findings in a new
study with public policy think tank American
Enterprise Institute (AEI).
CBS
News reported recently that operators of a San
Jose U-Haul business have trouble getting their rental vans back
"because so many are on a one-way ticket out of town." The revelation
inspired Perry to compare the costs of U-Haul rentals for trucks leaving
San Jose versus those heading into the city.
Story
continues below.
Silicon
Valley has arguably one of the highest costs of living in the nation.
The cost of leaving isn't cheap, either. Perry tracked the costs of
renting a 26-foot U-Haul truck to San Jose from six cities deemed
destinations for those moving out of the Bay Area — Las Vegas, Phoenix,
Portland, Ore., Nashville and Atlanta.
In
every model, the price of renting a truck outbound from San Jose was at
least double the amount of renting the same vehicle in the opposite
direction. See
the prices in the above gallery.
"To
help balance truck inventories and take advantage of higher demand in
some rental markets than others, it's natural that U-Haul would
implement demand-based, dynamic pricing," Perry writes.
A
study published by Redfin found the Bay Area continues
to lead the country in outward migration. The top destination for
Bay Area residents looking to leave is Sacramento, followed by Los
Angeles, Seattle, Portland and San Diego.
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