These metros offer lower home prices and a wide variety of job opportunities
Many homebuyers are moving out of state to take advantage of medium-sized metros that offer a similar lifestyle but more affordable homes.
These metros that offer relative affordability, strong employment, and large boomer populations can attract people to make an out-of-state home purchase, according to realtor.com’s analysis.
"Home prices have risen for seven consecutive years, far outpacing salary growth," said George Ratiu, senior economist at realtor.com. "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[s] price relief and a similar lifestyle."
Out of the top 10 moving destinations, seven enticed non-local buyers looking at homes with median prices 3% to 34% less expensive than their home markets in the second quarter. However, realtor.com noted that these metros were far from being the most affordable places out there, but were cheaper compared to home prices in neighboring cities. A typical home in these metros was 16% higher than the national median of $315,000.
The report also revealed that homebuyers tend to move 15 miles from their current home. Charleston, S.C., was the top moving destination. Buyers in neighboring markets of Charlotte, Atlanta, and New York flocked to Charleston. Boise followed, with buyers coming from pricier metros including Los Angeles, Salt Lake City, and Sacramento.
The average unemployment rate of 3.3% in the top 10 moving destinations was 30 basis points lower than the national average and 38 basis points below than the movers’ home metros.
Tax incentives in these destinations were the cherry on top for most out-of-state buyers, according to realtor.com. Eight of the top 10 destinations, including Cape Coral-Fort Myers and North Port-Sarasota, Fla. (6.6% overall burden), Boise (7.8%), and Charleston, Greenville, and Columbia (7.6%), S.C., have lower overall tax burdens compared to the national average of 8.6%, according to WalletHub.
Top 10 destinations for out-of-state movers include:
- Charleston, S.C.
- Boise City, Idaho
- Honolulu, Hawaii
- Columbia, S.C.
- Cape Coral- Fort Meyers, Fla.
- Portland, Maine
- North Port-Sarasota, Fla.
- Greenville, S.C.
- Tucson, Ariz.
- Las Vegas, Nev.
