I compared the cost of leaving Los Angeles, CA to go to 4 of the "Fastest Growing" cities in the US,

Assuming those current price differentials from U-Haul accurately reflect relative differences in demand for one-way truck rentals, that would imply that there are a lot more U-Haul trucks leaving Chicago for Houston and Dallas than there are trucks leaving Dallas and Houston for Chicago.
I think you missed Arthur s point. The price ratio is indeed 5.5:1, but that does not mean there are 5.5 people leaving theater tickets broadway shows Chicago for Houston for every 1 going the other way. My sister once had a job of driving rental cars back to their point of origin when the demand was too high. This represented an increase in costs that would need to be recovered by the renter. Likewise, if there is only 10% more people going one way than the other, U-haul may need to recover the additional costs of returning the trailers theater tickets broadway shows (i.e. sending them back by rail). theater tickets broadway shows It may take a 5.5 price ratio to get a 10% difference in supply and demand theater tickets broadway shows to balance.
As Musickcd points out the issue is where is there a surplus of trucks being left, and where is there a shortage, not individual routes. With both this and the prior posting about Ca, its clear that Tx is left with a surplus of trucks being dropped off there both Ca and Il have a shortage of trucks. So the company adjusts costs both to handle the possible need to ferry the trucks back to the source areas. Essentially you find that all these various quotes do is to reflect the net domestic migration of folks. Tx has a large in migration so that trucks leaving Tx for the north should have lower rates than trucks heading for Tx, for example what does Flint look like in terms of quotes? Of course Mi probably has had a great disparity for years as the economy there has been sour for a long time.
I compared the cost of leaving Los Angeles, CA to go to 4 of the “Fastest Growing” cities in the US, according to Forbes Magazine–Salt Lake City, Raleigh, NC, Seattle, WA, and Atlanta, GA. On average, it costs 86% more to leave Los Angeles for greener pastures. This supports Mr. Perry’s thesis.
I then compared the cost of leaving Los Angeles to go to 4 of the “Fastest DYING” cities in the US, again according to Forbes–Dayton, OH, Buffalo, NY, Detroit, MI, and Charleston, theater tickets broadway shows WV. On average, theater tickets broadway shows it costs 54% more to leave Los Angeles for these “less green” pastures. This suggests there’s more to the story than Mr. Perry’s conclusion.
My conclusion: theater tickets broadway shows It costs considerably more to leave Los Angeles than to arrive there, regardless of the desirability of the other city. I suspect this has more to do with the vagaries of U-Haul’s pricing mechanism, and as such it is probably not a very useful economic indicator.
It s not surprising that probably NO area is sending a net positive number of U-Hauls to CA be it a prosperous region or a poor region. Those in poor regions use U-Hauls to go to more prosperous regions with better theater tickets broadway shows economic opportunities CA loses in most such comparisons.
Here s a better test: Compare the prices of RENTAL CARS in L.A. vs. other locations cars returned to the location that rented them (as most rental cars are). If the price disparity some high cost aspect of living in L.A., that should be reflected in the pricing I made a quick comparison:
It s not surprising that probably NO area is sending a net positive number of U-Hauls to CA be it a prosperous region or a poor region. Those in poor regions use U-Hauls to go to more prosperous regions with better economic opportunities CA loses in most such comparisons.
Here s a better test: Compare the prices of RENTAL CARS in L.A. vs. other locations cars returned to the location that rented them (as most rental cars are). If the price disparity some high cost aspect of living in L.A., that should be reflected in the pricing I made a quick comparison:
Dr. Mark J. Perry is a full professor of economics at the Flint campus of The University of Michigan, where he has taught undergraduate and graduate courses in economics and finance since 1996. Starting in the fall of 2009, Perry has also held a joint appointment as a scholar at The American Enterprise Institute. read more
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