- There are 10 cities in the United States where some inhabitants are being relocated, and it all has to do with the costs of the real estate market
It seems that, once and for all, the real estate market is cooling off. Although that does not mean that people have money to buy houses in the places where they live. So for many it makes sense to move to places where the costs are more real than they can afford.
This relocation process is what a lot of Americans are going through. According to a new study carried out by the real estate company called Redfin, 32.6% of its users have sought to move to a new city during the last quarter.
Before the Covid-19 pandemic, around 26% of Redfin users were looking for homes that were outside of their own cities. Taking all this data as a reference, Redfin did an analysis and determined which are the 10 cities in the United States that are showing the greatest relocation of people, in order to find a more affordable house to live. These are:
- San francisco California
- Los Angeles California
- New York, New York
- Washington D.C.
- Seattle, Washington
- Boston, Massachusetts
- Detroit, Mich.
- Denver, Colo.
- Chicago, Ill.
- Minneapolis, Minnesota
“The typical house in San Francisco or San Jose now costs more than $1.5 million dollars. Add today’s 5%-plus mortgage rates and you have a sky-high monthly payment,” said Redfin Deputy Chief Economist Taylor Marr.
“Those factors, along with more companies giving employees the ongoing flexibility to work remotely, are driving more buyers to consider homes in other parts of the country. Someone who would have to stretch beyond their budget in Los Angeles could comfortably afford a house in Phoenix or San Antonio.”
“Tampa continues to attract a lot of out-of-state homebuyers from places like New York who can get more for their money in Florida,” said Eric Auciello, manager of Redfin in Tampa.
“Rising mortgage rates have driven some buyers out of the market, but it has also helped ease competition and curb bidding wars between locals and outsiders. Many buyers who were still outbid at the peak of the market are now accepting their offers and, in some cases, can even use FHA loans, make smaller down payments and keep the appraisal contingency,” he added to the analysis.