Many homebuyers were able to widen their searches in 2021 as many employers made remote-work options permanent. Remote workers are now able to move somewhere more affordable than their hometown, so it stands to reason that out-of-towners frequently have bigger budgets than locals,
They may come from a place with higher salaries, and/or they may have sold a home in a more expensive city.
The influx of out-of-towners with big budgets is contributing to the rise in home prices in popular migration destinations, pricing out many locals. Nashville home prices remain lower than many expensive coastal cities but were up 22.6% in December from the year before.
According to a new report from technology-powered real estate brokerage Redfin, relocators have bigger budgets than locals in 42 of the 49 US cities included in its analysis.
A Redfin agent in Nashville, Hope Geyer, said she was seeing a lot of out-of-state transplants, mostly from states like California that have an income tax.
“People moving from the West Coast will pay way over asking price without batting an eye. In their eyes, they’re getting a deal. It’s really hard for locals to compete right now, and it can be devastating for first-time buyers who aren’t able to offset high prices by selling a home before they buy a new one.”
To read the average budgets of Redfin.com home searchers, out-of-towners versus locals, 2021, click
here.
The report also concluded that the influx of out-of-towners with big budgets is contributing to the rise in home prices in popular migration destinations, pricing out many locals. Do you agree? Let us know your thoughts in the comments below.