Car-free living in the US

PARAGRAPH 1 --- What happened: Since 2020, approximately one million Americans have exited the new car market due to affordability issues, with no immediate signs of return, according to Wall Street. Meanwhile, a growing number of Americans are choosing car-free living, relying on public transit, bikes, or walking, as reported by The Guardian.

PARAGRAPH 2 --- Market impact: This shift is driving changes in the automotive industry, with fewer potential buyers. Companies like General Motors and Ford may face reduced demand for new vehicles. Conversely, public transportation providers and bike-sharing services like Lyft's Citi Bike could see increased ridership and potential growth. Urban planning and infrastructure stocks may also benefit from investments in public transit expansion.

PARAGRAPH 3 --- What to watch next: In Q2 2023, automakers' earnings reports will provide insights into the impact of reduced demand. Additionally, watch for urban planning initiatives and public transit funding decisions in major cities, which could accelerate the car-free living trend. Lastly, monitor consumer sentiment and affordability indices to gauge potential shifts in car-buying behavior.