On average, home buyers move only 15 miles from their current residence. But some metros offering affordability, strong employment, and large boomer populations may be enticing some Americans to move further away, a new study released Wednesday from realtor.com® shows.
Realtor.com® researchers ranked metros on which areas received the most out-of-state views on realtor.com® during the second quarter of 2019. Among the areas topping the list last quarter were several medium-sized markets, including Charleston, S.C., and Boise, Idaho.
"Home prices have risen for seven consecutive years, far outpacing salary growth,” says George Ratiu, realtor.com®’s senior economist. “Although interest rates are the lowest they have been in three years, cost has become a deal breaker for many buyers, especially in pricey West Coast metros. But instead of giving up on the American dream, many buyers have decided to look for a home in medium-sized metros outside their state that offer price relief and a similar lifestyle."
Seven of the top 10 moving destinations attracted non-local buyers who were eyeing homes with median prices 3% to 34% less expensive than their home markets. But their new destinations aren’t exactly known for affordability. Many are 16% more expensive than the national median of $315,000. However, they do tend to be cheaper than the person’s current metro area. For example, the median listing price in Boise is $372,500, which may be more enticing to those relocating from Los Angeles, where the median list price is $766,800.
Job relocations tend to drive a bulk of out-of-state moves. But retiring baby boomers heading to new cities are also propping up some of the markets on realtor.com®’s list. The average population share of those who are aged 65 or older was 19.5% among realtor.com®’s top 10 list. The top retiree markets making the list were Sarasota, Fla.; Fort Myers, Fla.; and Tucson, Ariz., which have populations in which more than 20% are 65 or older.
"The fact that the majority of the metros on the list are hot spots for retirees signals a shift in boomer preferences from the expensive cities where they built their careers to the more easy-going feel of vacation communities," Ratiu says. "Some of them may be initiating the purchase of their retirement home as a second home, while others may be purchasing it in their post-career stage of life."
Source: “2019 Cross Market Demand Report,” realtor.com® (Aug. 21, 2019)
