Where Are People Moving Today and Why?
Plenty of people are still moving these days. And if you’re thinking of making a move yourself, you may be considering the inventory and affordability challenges in the housing market and wondering what you can do to help offset those. A new report from Gravy Analytics provides insight into where people are searching for homes and what they’re prioritizing most right now. That information could help you plan your own move.
1. People Are Moving to Cities with Lower Housing Costs
One big factor motivating where buyers are going is affordability and that’s no big surprise. People are relocating to areas that have less expensive housing options. As a result, small cities are thriving. Hannah Jones, Economics Data Analyst at Realtor.com, summarizes why:
“Affordability is still very much front and center . . . a lot of what’s available is outside of the price range of many buyers. . . . so they look elsewhere for a little more bang for the buck.”
The takeaway for you? If you’re having trouble finding a home that fits your budget, it may help to browse other, more affordable locations nearby.
2. People Want to Live Where They Vacation
And, if you’re already expanding your search radius, you may be able to include a location that features your favorite type of destination, like a suburb near the beach or a mountain town. Data shows many other homeowners are making that type of move a priority today. According to the same report from Gravy Analytics:
“Whether it’s the opportunity to enjoy more weekend hikes in the mountains or to wake up to a lakeside sunrise, people are moving to areas that were once thought of as vacation spots.”
Even with today’s home prices and mortgage rates, here’s why a move like this could be possible for you. If you’re already a homeowner, the equity you’ll get when you sell your current house can help fuel that move and give you the down payment you’d need for your dream home.
3. People Who Work Remotely Are Taking Advantage of that Flexibility
Ongoing remote work is another major factor in where people are moving. A recent report from the McKinsey Global Institute says this about recent movement patterns:
“Many of these moves happened because employees untethered from their daily commutes began to care less about how far they lived from the office.”
If you’re a remote or hybrid worker, you don’t have to live in the same city, or sometimes even the same state, as your job. That means you can prioritize other things, like being closer to loved ones, when buying a home.
In fact, the same McKinsey Global Institute report notes for people who moved during the pandemic, 55% reported moving farther from the office. And since remote work is still a popular choice today, homebuyers will likely continue to take advantage of that flexibility.
Shifting Landscapes: Exploring the Californian Exodus in Housing and Real Estate
In recent years, a noticeable trend has emerged in California – a state known for its picturesque landscapes, vibrant cities, and tech-driven economy. People are leaving the Golden State in search of more affordable housing and promising real estate opportunities elsewhere. The Californian exodus is reshaping the real estate landscape across the nation, leading to new trends and shifts in housing markets.
1. The Exodus Explained
The Californian exodus isn’t merely a blip on the radar; it’s a phenomenon that has gained momentum over the past decade. The reasons behind this mass migration are multifaceted. High housing costs, steep taxes, and a rising cost of living are just a few of the factors prompting individuals, families, and even businesses to consider greener (and more affordable) pastures.
2. The Rise of the Intermountain West
One of the prime destinations for those leaving California is the Intermountain West. States like Arizona, Nevada, Utah, and Idaho have seen an influx of Californians seeking lower living costs, larger properties, and a more relaxed lifestyle. Cities such as Phoenix, Las Vegas, and Boise have become magnets for those seeking affordable housing options without compromising on quality of life.
3. The Allure of the Lone Star State
Texas, with its diverse economy, job opportunities, and lower tax burdens, has emerged as another major beneficiary of the Californian exodus. Cities like Austin, Dallas, and Houston have experienced rapid growth due to an influx of tech companies and professionals seeking to escape California’s high prices.
4. The Southeastern Shuffle
The Southeastern United States has also become a hotspot for those migrating from California. States like Florida, Georgia, and the Carolinas offer warm climates, thriving economies, and a wide range of housing options. The Sunshine State, in particular, has seen a significant increase in population, partly attributed to its lack of state income tax and coastal living appeal.
5. Rust Belt Renaissance
Surprisingly, even some cities in the Rust Belt region are witnessing an influx of Californians. Cities like Detroit, Pittsburgh, and Columbus are attracting individuals looking for affordable housing and a chance to be part of urban revitalization efforts.
6. Factors Driving the Migration
While the search for affordable housing is a common thread, other factors are also at play. The COVID-19 pandemic has highlighted the viability of remote work, enabling people to relocate without sacrificing career opportunities. Additionally, the desire for a change in lifestyle, access to outdoor activities, and a lower overall cost of living are influencing relocation decisions.
7. Impact on Local Real Estate Markets
The influx of Californians is having a tangible impact on real estate markets in these destination states. Increased demand for housing is driving up prices in certain areas, leading to potential affordability challenges for local residents. This phenomenon raises questions about sustainable growth and the need for balanced real estate development.
8. The Californian Connection
Despite the exodus, California remains an attractive destination for many due to its economic opportunities, cultural diversity, and unique lifestyle. Some are finding ways to make the best of both worlds by investing in properties in other states while maintaining ties to California.
9. Future Trends
As the Californian exodus continues to shape housing and real estate trends, it’s likely that a shift in urban development strategies will occur. Cities and regions will need to address the challenges and opportunities presented by this migration, focusing on sustainable growth, infrastructure development, and community integration.
The Californian exodus is more than a migration trend; it’s a reflection of changing priorities, work dynamics, and the quest for affordable housing. The movement of people from California to various other states is reshaping real estate markets, economies, and social landscapes across the country. As the exodus unfolds, it will be fascinating to witness how different regions respond to the influx and how it shapes the future of housing and real estate.
Bottom Line
Lots of people are still moving today. If you want help navigating today’s inventory or affordability challenges, and expert advice to help you find your ideal home, let’s connect.