In 2022 Q1, the share of buyers interested in out-of-state listings grew 4.1 percentage points year-over-year nationwide; six of the top 10 relocation destinations were in the Sun Belt

SANTA CLARA, Calif., May 3, 2022 /PRNewswire/ -- As buyers explore ways to up their odds of success in the face of intensifying cost pressures, new research indicates that home shopper interest in relocating is on the rise. In the first quarter of 2022, 40.5% of prospective buyers on Realtor.com® viewed home listings located outside of their current state, compared to 36.4% in 2021 and 33.4% in 2020.

Where are they heading? The top 10 destinations, in rank order1, were: El Paso, Texas, Albuquerque, N.M., Washington, D.C., Birmingham, Ala., Hartford, Conn, Omaha, Neb., McAllen, Texas, New York, N.Y., Augusta, Ga. and Greensboro, N.C. (see table below).

"After two years of pandemic remote work, offices have started to reopen, but instead of seeing a slowdown in the number of people interested in homes out of state, we're seeing an acceleration," said Realtor.com® Chief Economist Danielle Hale. "Taking a closer look at the top destinations, we see some very different trends driving the desire to live out of state and home shoppers' diverse needs. First, affordability remains a key focus for buyers, with demand for less expensive areas surging in recent months as climbing inflation and mortgage rates compound cost pressures faced by buyers. Next, flexibility enabled by broader adoption of remote work has fueled interest in sunnier climates, such as the Sun Belt. And finally, some people are simply ready to get back to normal, with some buyers' desire to live downtown lifestyles driving two big cities into the top 10."

With tighter budgets, buyers expand search areas in search of affordability

While Americans are expected to have a better chance to find a home in 2022, rapidly intensifying cost pressures are creating a greater sense of urgency for many buyers to find a home in their budget. With climbing inflation and mortgage rates compounding record-high for-sale home prices and rents, 2022 home shoppers have plenty of motivation to explore relatively affordable markets where higher incomes may yield more purchasing power.

And January-March search trends suggest many prospective buyers are doing just that. In eight of the top 10 relocation destinations, listing prices per square foot were lower than the national average ($206). Additionally, although rising demand is fueling double-digit annual growth in the per square foot price in the majority (9) of these markets, half posted lower gains than the 2022 Q1 national rate (+15.7%). For instance, the No. 7 market of McAllen, Texas offered the most affordable home price per square foot among the top 10, at a median of $125. While that represented an increase of 13.8% year-over-year, McAllen's median listing price per square foot was still lower than in its top source of out-of-state buyer demand: Washington, D.C. ($277).

With more flexibility, some home shoppers migrate toward warmer climates

Cost pressures may be a forcing factor for some out-of-state home shoppers, but others could be approaching relocation as an opportunity to explore living in areas they couldn't have before COVID, with this flexibility enabled by trends like the rise in remote work. 2022 Q1 Realtor.com® search trends suggest rising numbers of home shoppers are potentially heading to areas offering warmer climates. In fact, Sun Belt metros accounted for six of the top 10 relocation destinations, all of which posted bigger annual gains in the out-of-state share of listings viewers than the national rate, led by El Paso (+11.6 percentage points).

Further illustrating the rise in demand for housing markets offering warmer climates, five of these six Sun Belt metros counted northern cities as top sources for out-of-state demand. For example, Washington, D.C. and New York, N.Y. were among the top three areas where home shoppers were searching for homes in No. 9 market Augusta, Ga. and No. 10 Greensboro, N.C.

As some buyers pursue the downtown life, big city demand returns

Although some of the top relocation destinations reflect trends that surfaced during COVID, very different factors could potentially be driving demand in others. With offices reopening and everyday life getting back into full swing in many downtown areas, major metros accounted for two of the top 10 relocation destinations: Washington, D.C. at No. 3 and New York, N.Y. at No. 8. Additionally, the No. 5 spot went to Hartford, Conn., which some may view as a commuter city to New York.

Going further back in the Realtor.com® data history, to its 2020 Q1 Cross-Market Demand Report, D.C. and N.Y. were among the 10 where the onset of COVID was most pronounced and home shopping patterns showed the impact. However, in all of these metros, 2022 Q1 data shows interest from home shoppers from other states has not only returned to year-over-year growth, but is at the highest level of any quarter since 2018 Q1.

Hale added, "In addition to the full rebound of out-of-state demand to New York, Washington D.C. and Hartford, the fact that these markets made the top 10 destinations in 2022 Q1 signals the return of some pre-COVID norms. It simply comes down to stage of life, which housing decisions are often tied to, as big cities have historically seen strong inbound demand from young buyers from all over the country looking to establish themselves."

2022 Q1 Cross-Market Demand Metrics – Top 10 Relocation Destinations

Rank

Metro

2022 Q1 out-of-
state share YoY
(pct. pts.)

2022 Q1 out-
of-state
share

Top sources of
out-of-state
demand

2022 Q1 median
listing price per
sq. ft.

1

El Paso, Texas

11.59

48.4%

Phoenix, Ariz.

Las Cruces, N.M.

Los Angeles, Calif.

$140

2

Albuquerque, N.M.

11.31

49.8%

Denver, Colo.

Phoenix, Ariz.

Los Angeles, Calif.

$182

3

Washington, D.C.

10.27

50.7%

New York, N.Y.

Philadelphia, Penn.

Baltimore, Md.

$277

4

Birmingham, Ala.

8.31

40.6%

Atlanta, Ga.

Seattle, Wash.

Washington, D.C.

$144

5

Hartford, Conn.

7.83

38.8%

New York, N.Y.

Boston, Mass.

Providence, R.I.

$189

6

Omaha, Neb.

7.60

43.9%

Washington, D.C.

Chicago, Ill.

Denver, Colo.

$157

7

McAllen, Texas

7.49

34.9%

Washington, D.C.

Los Angeles, Calif.

Chicago, Ill.

$125

8

New York, N.Y.

7.48

34.1%

Washington, D.C.

Philadelphia, Penn.

Miami, Fla.

$600

9

Augusta, Ga.

7.02

59.6%

Atlanta, Ga.

Washington, D.C.

New York, N.Y.

$135

10

Greensboro, N.C.

6.80

36.2%

Washington, D.C.

Atlanta, Ga.

New York, N.Y.

$145

 

2022 Q1 Cross-Market Demand Metrics: Out-of-State Viewers – 100 Largest U.S. Markets

Metro Area

Out-of-state
share YoY
(pct. pts.)

2022 Q1
out-of-state
share

2022 Q1 median
listing price per
sq. ft.

Median listing
price per sq.
ft. YoY

Akron, Ohio

3.57

23.8%

$113

10.7%

Albany-Schenectady-Troy, N.Y.

4.29

21.9%

$169

0.6%

Albuquerque, N.M.

11.31

49.8%

$182

18.5%

Allentown-Bethlehem-Easton, Pa.-N.J.

2.86

35.1%

$166

13.3%

Atlanta-Sandy Springs-Roswell, Ga.

1.77

31.8%

$177

18.0%

Augusta-Richmond County, Ga.-S.C.

7.02

59.6%

$135

17.4%

Austin-Round Rock, Texas

-0.64

30.2%

$267

39.6%

Bakersfield, Calif.

2.53

11.7%

$205

18.8%

Baltimore-Columbia-Towson, Md.

6.58

39.7%

$189

6.7%

Baton Rouge, La.

5.24

38.4%

$150

10.3%

Birmingham-Hoover, Ala.

8.31

40.6%

$144

12.1%

Boise City, Idaho

1.59

59.2%

$274

20.2%

Boston-Cambridge-Newton, Mass.-N.H.

2.98

35.0%

$407

12.6%

Bridgeport-Stamford-Norwalk, Conn.

4.32

50.8%

$320

5.6%

Buffalo-Cheektowaga-Niagara Falls, N.Y.

5.63

25.4%

$138

7.6%

Cape Coral-Fort Myers, Fla.

0.78

62.3%

$239

35.6%

Charleston-North Charleston, S.C.

3.55

67.5%

$225

11.0%

Charlotte-Concord-Gastonia, N.C.-S.C.

4.84

46.4%

$199

19.9%

Chattanooga, Tenn.-Ga.

4.26

56.4%

$169

18.2%

Chicago-Naperville-Elgin, Ill.-Ind.-Wis.

3.53

24.7%

$187

5.6%

Cincinnati, Ohio-Ky.-Ind.

4.97

37.5%

$148

12.0%

Cleveland-Elyria, Ohio

4.10

25.7%

$114

10.5%

Colorado Springs, Colo.

-0.21

42.0%

$228

23.5%

Columbia, S.C.

5.68

62.0%

$141

19.4%

Columbus, Ohio

4.26

23.9%

$168

13.8%

Dallas-Fort Worth-Arlington, Texas

2.14

25.3%

$190

21.0%

Dayton, Ohio

3.73

27.8%

$121

12.9%

Deltona-Daytona Beach-Ormond Beach, Fla.

3.35

48.0%

$205

20.2%

Denver-Aurora-Lakewood, Colo.

1.97

35.1%

$281

14.6%

Des Moines-West Des Moines, Iowa

5.38

39.4%

$211

14.8%

Detroit-Warren-Dearborn, Mich

3.65

20.3%

$158

2.5%

Durham-Chapel Hill, N.C.

4.48

40.6%

$229

23.3%

El Paso, Texas

11.59

48.4%

$140

16.6%

Fresno, Calif.

1.30

11.9%

$232

17.2%

Grand Rapids-Wyoming, Mich

3.33

27.1%

$168

11.5%

Greensboro-High Point, N.C.

6.80

36.2%

$145

15.4%

Greenville-Anderson-Mauldin, S.C.

4.30

55.8%

$151

17.9%

Harrisburg-Carlisle, Pa.

2.12

28.0%

$141

9.7%

Hartford-West Hartford-East Hartford, Conn.

7.83

38.8%

$189

16.1%

Houston-The Woodlands-Sugar Land, Texas

1.29

37.8%

$165

17.5%

Indianapolis-Carmel-Anderson, Ind.

0.43

30.9%

$136

17.2%

Jackson, Miss.

4.86

41.3%

$133

11.3%

Jacksonville, Fla.

5.68

47.0%

$200

24.1%

Kansas City, Mo.-Kan.

5.12

48.4%

$177

14.1%

Knoxville, Tenn.

3.55

52.7%

$179

25.0%

Lakeland-Winter Haven, Fla.

4.10

45.6%

$183

29.4%

Las Vegas-Henderson-Paradise, Nev.

0.21

55.3%

$253

28.7%

Little Rock-North Little Rock-Conway, Ark.

4.65

48.7%

$122

9.7%

Los Angeles-Long Beach-Anaheim, Calif.

2.23

25.5%

$561

10.4%

Louisville/Jefferson County, Ky.-Ind.

5.32

41.6%

$151

13.2%

Madison, Wis.

2.70

32.8%

$199

15.4%

McAllen-Edinburg-Mission, Texas

7.49

34.9%

$125

13.8%

Memphis, Tenn.-Miss.-Ark.

5.32

51.5%

$145

19.7%

Miami-Fort Lauderdale-West Palm Beach, Fla.

3.25

37.4%

$312

18.9%

Milwaukee-Waukesha-West Allis, Wis.

2.23

30.6%

$170

7.5%

Minneapolis-St. Paul-Bloomington, Minn.-Wis.

3.02

25.5%

$178

-1.1%

Nashville-Davidson--Murfreesboro--Franklin, Tenn.

4.13

54.0%

$233

20.8%

New Haven-Milford, Conn.

4.30

37.1%

$201

18.4%

New Orleans-Metairie, La.

6.01

43.5%

$169

9.0%

New York-Newark-Jersey City, N.Y.-N.J.-Pa.

7.48

34.1%

$600

43.9%

North Port-Sarasota-Bradenton, Fla.

0.60

58.8%

$268

33.0%

Oklahoma City, Okla.

3.66

44.9%

$154

17.0%

Omaha-Council Bluffs, Neb.-Iowa

7.60

43.9%

$157

12.3%

Orlando-Kissimmee-Sanford, Fla.

4.33

41.8%

$207

25.1%

Oxnard-Thousand Oaks-Ventura, Calif.

1.82

14.6%

$477

16.1%

Palm Bay-Melbourne-Titusville, Fla.

4.10

46.9%

$201

20.9%

Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.

6.18

36.8%

$191

9.4%

Phoenix-Mesa-Scottsdale, Ariz.

-0.89

45.3%

$261

24.3%

Pittsburgh, Pa.

3.70

27.7%

$148

3.4%

Portland-South Portland, Maine

4.30

63.4%

$296

14.3%

Portland-Vancouver-Hillsboro, Ore.-Wash.

2.34

47.6%

$296

16.0%

Providence-Warwick, R.I.-Mass.

3.36

46.4%

$273

14.1%

Raleigh, N.C.

4.07

39.1%

$197

21.6%

Richmond, Va.

6.06

32.2%

$186

14.1%

Riverside-San Bernardino-Ontario, Calif.

2.50

17.8%

$300

19.9%

Rochester, N.Y.

5.60

23.7%

$126

-4.2%

Sacramento--Roseville--Arden-Arcade, Calif.

3.00

13.3%

$338

17.2%

Salt Lake City, Utah

3.47

38.2%

$222

15.1%

San Antonio-New Braunfels, Texas

3.61

27.5%

$177

19.2%

San Diego-Carlsbad, Calif.

2.90

26.9%

$531

18.8%

San Francisco-Oakland-Hayward, Calif.

3.05

18.2%

$691

8.7%

San Jose-Sunnyvale-Santa Clara, Calif.

2.31

16.1%

$834

11.6%

Scranton--Wilkes-Barre--Hazleton, Pa.

1.45

32.0%

$109

12.4%

Seattle-Tacoma-Bellevue, Wash.

2.20

44.3%

$397

20.2%

Spokane-Spokane Valley, Wash.

1.64

34.8%

$223

22.6%

Springfield, Mass.

-0.45

33.3%

$200

10.5%

St. Louis, Mo.-Ill.

3.15

34.1%

$145

9.7%

Stockton-Lodi, Calif.

3.17

9.0%

$314

22.1%

Syracuse, N.Y.

4.70

23.0%

$113

4.6%

Tampa-St. Petersburg-Clearwater, Fla.

3.04

45.5%

$218

28.3%

Toledo, Ohio

1.84

30.7%

$107

2.3%

Tucson, Ariz.

0.63

52.8%

$206

20.9%

Tulsa, Okla.

2.76

47.4%

$137

18.1%

Urban Honolulu, Hawaii

0.62

67.0%

$624

14.1%

Virginia Beach-Norfolk-Newport News, Va.-N.C.

4.99

53.1%

$181

9.7%

Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.

10.27

50.7%

$277

9.8%

Wichita, Kan.

5.25

37.1%

$115

14.1%

Winston-Salem, N.C.

6.75

35.8%

$139

12.7%

Worcester, Mass.-Conn.

3.94

31.4%

$228

10.0%

Youngstown-Warren-Boardman, Ohio-Pa.

4.59

41.1%

$86

8.5%

Methodology

This release focuses on year-over-year trends in prospective buyer demand from out of state, nationally and in the 100 largest markets, based on Realtor.com®'s Cross-Market Demand Report for 2022 Q1 (Jan.-March 2022), which analyzes online traffic trends for for-sale properties on Realtor.com®. Read the full report to find additional insights into home shopper migration patterns across the 300 largest markets.

About Realtor.com®

Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago, and today through its website and mobile apps offers a marketplace where people can learn about their options, trust in the transparency of information provided to them, and get services and resources that are personalized to their needs. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com®.

Media Contact
rachel.conner@move.com 

1 In this release, which focuses on the 100 largest U.S. markets, top relocation destinations are defined as metros that posted the biggest annual gains (percentage points) in the share of listing viewers from out of the state in 2022 Q1 (January-March).

 

Cision View original content:https://www.prnewswire.com/news-releases/realtorcom-reveals-top-destinations-for-out-of-state-home-shoppers-301538127.html

SOURCE Realtor.com

Copyright 2022 PR Newswire

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