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The following video transcript is generated automatically by a computer algorithm that learns and gets better on a daily basis. Please accept our apologies if some content below doesn’t make sense:

First off, a big theme that I’ve seen on Twitter in other places and a lot of sort of discussion forums and things like that is the question of will cities survive this crisis that we’re currently in? And so what’s been going on, particularly in the States and particularly in it would seem, San Francisco and New York, there’s a lot of people in the sort of venture capital and Start-Up and sort of starting business entrepreneurial scenes who are all saying, oh, I’m going to leave the city. I want to find somewhere else to live. That’s cheaper, better, less crowded. It seems to be a function of a couple of things, one is people are obviously, you know, stuck at home with all the stuff that’s going on. People are, you know, working from home. There’s a lot of remote work going on. So a lot people are now thinking, oh, OK, well, you know, I don’t need to live within commuting distance of work anymore because I can do it remotely. So there are other places in the country or in other countries where I can live for a sort of a a better and better living space, better sort of lifestyle, far cheaper than I’m currently paying in New York, San Francisco, where we might be where rents are sort of infamously through the roof and going crazy. And there’s been a lot of opinion pieces, particularly the last few days. James Elst, you write one about will New York survive this current downturn? So there’s a lot of doom and gloom that’s sort of coming in and different opinions and things that people are thinking about, why it’s happening and what might happen. What’s your opinion on this?

I definitely think it’s a trend that’s gone on. I think COPD accelerated, but the prices were already too high by way too high to a point that if rent was too high, then I recall Peter Deal saying that he would want to invest in San Francisco any more because most of his money was going to landlords. So then like him, Needham, Mass. They moved to Los Angeles. But even now, they’re moving out of Los Los Angeles. I think the many people I mean, they’re high profile case of Joe Rogan. Top podcast downloads in the US.

He hasn’t been living in California for 20 or 20 or plus years, I think.

And now he announced he’s moving to Texas.

He well, he’s sharing this issue with many other people saying it’s overcrowded, like Los Angeles, like 20 million people, I think. And, of course, it’s getting difficult to manage that size of a city from a traffic point of view. People on the street living on the streets as well. And and they ramp up taxes. See, that was the solution. So then people say, how long? But why? What I’m doing here. So. And then other places. Also, the Kovik put pressure on the system to show why the fragility of some policies. There was this high profile case as well, were saying to us, there are very outspoken on this issue. We’ve quarantined the quarantine of people, you know, forcing people to stay home and businesses not to open at the same time.

So that’s yet has been widely criticised by many.

And from Fruchter point of view, the hyperfocus was in a mosque trying to open their chicken factory in California, and it’s not allowed. I think he end up doing it anyway. But now he plans to launch a second tier factory in Texas. So not in California. Maybe he will start hanging out more in other states as well. So what do you have those on those are like two big cases, high profile cases that can definitely be, you know, influence other people doing so. Then you have there has been a trend for quite a while, less wealth for off of ally, high profile hedge fund managers or just financial guys from New York moving to Florida because of Texas mainly as well. They’ve got to beat New York at any time with a flight or flight. They live in sunny Florida where they pay, think it’s like six percent or you, of course, on the structures they cut. What is a maximum 10 percent worse? California, New York. You will be looking at half of your income plus. Oh, so, of course, higher cost of living as well.

Yeah. And it’s packed so and especially so leaving aside those, you know, high profile business moguls, just a regular guy having a family or not even having a family. Yeah. You can make if you have more space brawly, you can choose swell. You have more options if you can work remotely. So Facebook announced is going to encourage Masterfoods workforce to work remotely. So if big corporate star, big, big and corporate starts encouraging that, then you have all these critical mass of people going to other cities to. That they believe value not their income, because they can keep it properly. But other stuff die, whether that you know, how much space, how can they afford to buy a house, how well, schools like education, et cetera. So whereas nowadays it was more what did the order of priorities was work and get the job on them. How close can I leave from there? Or or even from a transport link point of view and then education then. Like their lifestyle was at the very bottom thoroughly because you’ve got you don’t get to choose or you didn’t. But maybe now you can. So I personally moved after living ten years in London to Barcelona and even not into Barcelona, but a little bit outside of Barcelona. And I’m talking with our entrepreneurs and people before making that move.

They highly appreciate that saying. Yeah, I think it’s a good move. A few can I sleep commuted to London to Kobe, but still four kids have more space different whether it’s. Yeah, it could be important. So it depends on each one.

Maybe we don’t like the beach or people value other things, but probably at the core, everyone wants to pay less and have more space. So yeah, I think cities would survive. But I think they will need to re adapt properly. That hype can keep going forever. But let’s see. I think also, if globalisation is that safe, it reached its peak. That can make can change things as well because guy really international hubs like New York or London, they can get away with, you know, high rent because it’s not even their own market like the US, UK. But the global demand for for being in those cities for whatever reason. So then they can. They could now get away with it. But if locals are not that interested anymore, they can find another way of working remotely. And then it’s harder for international citizens to come on living to those cities because of visas or whatever, then. Yeah, I think situation should normalise. Actually not it will not be probably a crisis if we just normalise. But we’ll see.

I’m not so sure that global demand will decrease that easily. So yes, there will be many factors playing out same time.

Someone made quite a good point in one of the Twitter threads I was reading about it, so people were making all of those kind of arguments you just made there in terms of, you know, the cost benefit analysis has changed. So, you know, the way the system was sort of set up previously was to you know, there were pros living a citizen. There were cons living in cities. And some of those pros have been knocked off because you can’t do anything at the moment. And a bunch of the cons of increase because there’s more problems. And so a lot people are doing the maths and going elsewhere. But someone made a really interesting point, which stuck out to me. And they were saying. Cities grow by usually by an influx of young people, right? So you find so young people move into the city for work. And then older people tend to move out to the suburbs and other places when they get a bit older, start to have families and their cost benefit analysis changes. Right. And that actually, you know, the thing underpinning the influx of people to the city is jobs and things like that, but also fundamentally sex. Right. If you’re a young person and you’re single and you’re looking to find lots of other young people in a similar frame of mind and to find partners and do whatever, then you want to go somewhere where there’s a decent proportion of those people to find your best possible partner. And so a lot of people do do that, either consciously or subconsciously. You know, that’s that’s a big tick in the pro box for the young people. And that’s not going to change. Right. So you still want to go where there’s a big concentration of, you know, people that you’re interested in particular when you’re young and single. So that and a lot of the people who are saying, like, oh, I want to move out is are actually sort of at the stage in a situation of life where they would typically be moving out anyway. But this is just another different set of reasons for doing it as opposed to the normal ones.

Yeah, I think God. Yeah. The night life are just clubs and bars. It’s very important in this city. And definitely people will still be interested in that, but not at all price. They come find secondary cities like student cities, you know, like maybe not London, but maybe Oxford, Cambridge or maybe other cities. Yes. So. Yeah, we’ll see. But, yeah, definitely that’s on. I don’t know. Maybe it’s better for online dating sites, but that’s a different focus.

Yes. Yeah, dating. That’s something else entirely.

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