CoStar CEO explains why companies are moving jobs to smaller cities

Andrew Florance hires hundreds of recent college grads for research and tech jobs. When considering where to open a new 700-person research hub recently he made top-notch local colleges a priority.

But Florance — whose company owns Apartments.com — is also acutely aware of how difficult it is now for his employees, some of them making $45,000 or $50,000 a year, to afford to live in cities like his hometown, Washington, D.C.

“In Washington, D.C. I would expect to pay $2,000 or more for a one-bedroom anywhere close to work,” Florance said. “In Kansas City I would expect to spend $700 or $800 for a one-bedroom, so less than half. If your rent for a small, one-bedroom is $2,400 a year, that’s eaten up more than half of your income right away. You have to have a roommate in the one-bedroom or you have to commute two hours.”

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