Realtor.com® Reveals Top Destinations for Out-of-State Home Shoppers
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- |
2022 Q1 out- |
Top sources of |
2022 Q1 median |
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 |
2022 Q1 |
2022 Q1 median |
Median listing |
3.57 |
23.8% |
$113 |
10.7% |
|
4.29 |
21.9% |
$169 |
0.6% |
|
11.31 |
49.8% |
$182 |
18.5% |
|
2.86 |
35.1% |
$166 |
13.3% |
|
1.77 |
31.8% |
$177 |
18.0% |
|
7.02 |
59.6% |
$135 |
17.4% |
|
-0.64 |
30.2% |
$267 |
39.6% |
|
2.53 |
11.7% |
$205 |
18.8% |
|
6.58 |
39.7% |
$189 |
6.7% |
|
5.24 |
38.4% |
$150 |
10.3% |
|
8.31 |
40.6% |
$144 |
12.1% |
|
1.59 |
59.2% |
$274 |
20.2% |
|
2.98 |
35.0% |
$407 |
12.6% |
|
4.32 |
50.8% |
$320 |
5.6% |
|
5.63 |
25.4% |
$138 |
7.6% |
|
0.78 |
62.3% |
$239 |
35.6% |
|
3.55 |
67.5% |
$225 |
11.0% |
|
4.84 |
46.4% |
$199 |
19.9% |
|
4.26 |
56.4% |
$169 |
18.2% |
|
3.53 |
24.7% |
$187 |
5.6% |
|
4.97 |
37.5% |
$148 |
12.0% |
|
4.10 |
25.7% |
$114 |
10.5% |
|
-0.21 |
42.0% |
$228 |
23.5% |
|
5.68 |
62.0% |
$141 |
19.4% |
|
4.26 |
23.9% |
$168 |
13.8% |
|
2.14 |
25.3% |
$190 |
21.0% |
|
3.73 |
27.8% |
$121 |
12.9% |
|
3.35 |
48.0% |
$205 |
20.2% |
|
1.97 |
35.1% |
$281 |
14.6% |
|
5.38 |
39.4% |
$211 |
14.8% |
|
3.65 |
20.3% |
$158 |
2.5% |
|
4.48 |
40.6% |
$229 |
23.3% |
|
11.59 |
48.4% |
$140 |
16.6% |
|
1.30 |
11.9% |
$232 |
17.2% |
|
3.33 |
27.1% |
$168 |
11.5% |
|
6.80 |
36.2% |
$145 |
15.4% |
|
4.30 |
55.8% |
$151 |
17.9% |
|
2.12 |
28.0% |
$141 |
9.7% |
|
7.83 |
38.8% |
$189 |
16.1% |
|
1.29 |
37.8% |
$165 |
17.5% |
|
0.43 |
30.9% |
$136 |
17.2% |
|
4.86 |
41.3% |
$133 |
11.3% |
|
5.68 |
47.0% |
$200 |
24.1% |
|
5.12 |
48.4% |
$177 |
14.1% |
|
3.55 |
52.7% |
$179 |
25.0% |
|
4.10 |
45.6% |
$183 |
29.4% |
|
0.21 |
55.3% |
$253 |
28.7% |
|
4.65 |
48.7% |
$122 |
9.7% |
|
2.23 |
25.5% |
$561 |
10.4% |
|
5.32 |
41.6% |
$151 |
13.2% |
|
2.70 |
32.8% |
$199 |
15.4% |
|
7.49 |
34.9% |
$125 |
13.8% |
|
5.32 |
51.5% |
$145 |
19.7% |
|
3.25 |
37.4% |
$312 |
18.9% |
|
2.23 |
30.6% |
$170 |
7.5% |
|
3.02 |
25.5% |
$178 |
-1.1% |
|
4.13 |
54.0% |
$233 |
20.8% |
|
4.30 |
37.1% |
$201 |
18.4% |
|
6.01 |
43.5% |
$169 |
9.0% |
|
7.48 |
34.1% |
$600 |
43.9% |
|
0.60 |
58.8% |
$268 |
33.0% |
|
3.66 |
44.9% |
$154 |
17.0% |
|
7.60 |
43.9% |
$157 |
12.3% |
|
4.33 |
41.8% |
$207 |
25.1% |
|
1.82 |
14.6% |
$477 |
16.1% |
|
4.10 |
46.9% |
$201 |
20.9% |
|
6.18 |
36.8% |
$191 |
9.4% |
|
-0.89 |
45.3% |
$261 |
24.3% |
|
3.70 |
27.7% |
$148 |
3.4% |
|
4.30 |
63.4% |
$296 |
14.3% |
|
2.34 |
47.6% |
$296 |
16.0% |
|
3.36 |
46.4% |
$273 |
14.1% |
|
4.07 |
39.1% |
$197 |
21.6% |
|
6.06 |
32.2% |
$186 |
14.1% |
|
2.50 |
17.8% |
$300 |
19.9% |
|
5.60 |
23.7% |
$126 |
-4.2% |
|
3.00 |
13.3% |
$338 |
17.2% |
|
3.47 |
38.2% |
$222 |
15.1% |
|
3.61 |
27.5% |
$177 |
19.2% |
|
2.90 |
26.9% |
$531 |
18.8% |
|
3.05 |
18.2% |
$691 |
8.7% |
|
2.31 |
16.1% |
$834 |
11.6% |
|
1.45 |
32.0% |
$109 |
12.4% |
|
2.20 |
44.3% |
$397 |
20.2% |
|
1.64 |
34.8% |
$223 |
22.6% |
|
-0.45 |
33.3% |
$200 |
10.5% |
|
3.15 |
34.1% |
$145 |
9.7% |
|
3.17 |
9.0% |
$314 |
22.1% |
|
4.70 |
23.0% |
$113 |
4.6% |
|
3.04 |
45.5% |
$218 |
28.3% |
|
1.84 |
30.7% |
$107 |
2.3% |
|
0.63 |
52.8% |
$206 |
20.9% |
|
2.76 |
47.4% |
$137 |
18.1% |
|
0.62 |
67.0% |
$624 |
14.1% |
|
4.99 |
53.1% |
$181 |
9.7% |
|
10.27 |
50.7% |
$277 |
9.8% |
|
5.25 |
37.1% |
$115 |
14.1% |
|
6.75 |
35.8% |
$139 |
12.7% |
|
3.94 |
31.4% |
$228 |
10.0% |
|
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®.
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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).
SOURCE Realtor.com
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