Texas, Virginia, Florida metros are still 'relatively' affordable: report
32% of U.S. homebuyers looked to move to a different metro in April
The number of relatively affordable migration spots across the United States is growing smaller, according to a new report.
It comes at a time when homeowners are trying to relocate to affordable areas more than ever before to lessen the burden of surging inflation, which continues to push up the price of everyday necessities such as food and gas.
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In fact, 32% of homebuyers across the nation looked to move to a different metro in April, just shy of the all-time high of 32.3% attained earlier this year, according to real estate brokerage Redfin.
A new home is for sale in Madison, Ga. (AP Photo/John Bazemore / AP Newsroom)
However, prices in metros that were once affordable are already skyrocketing and increasingly pricing out buyers from the market, "a dynamic that’s being exacerbated by rising mortgage rates," according to Redfin.
Still, according to Redfin's data, there are eight popular destinations that are "relatively affordable," especially when compared to high-priced metros areas like New York or San Francisco.
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Top ‘relatively affordable’ areas and how much a typical home sold for in each during April:
- Virginia Beach, Virginia (15th most popular destination): $315,0000 in April
- San Antonio, Texas (9th most popular destination): $330,000.
- Houston, Texas (10th most popular destination): $340,000.
- Jacksonville, Florida (13th most popular destination): $357,000.
- Bakersfield, California (20th most popular destination): $365,000.
- Tampa, Florida (3rd most popular destination): $370,000.
- Atlanta, Georgia (12th most popular destination): $383,000.
- Cape Coral, Florida (6th most popular destination): $419,000.
Now, however, some locals are being priced out of the market because many people are moving in from expensive areas.
In Tampa, for instance, local homebuyers need to earn 47.8% more than they did a year ago for a median-priced home. In Atlanta, consumers would need to earn 40.6% more, according to Redfin data.
"For a buyer who sold their home in a place like New York for a million dollars, Tampa is affordable," Tampa-based Redfin team manager Eric Auciello, said. "They can get a nice home in a desirable neighborhood for around $550,000."
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The issue is that for locals who are "looking in the $300,000 to $400,000 price point, there’s next to nothing for sale," Auciello added. This means locals are being forced to turn to condos or move to an even more affordable rural area.