Homebuyers sought out affordable markets in 2020, leaving major cities behind
People who moved last year went to areas where houses were cheaper and bigger
More people moving into vacation homes full-time
The housing market remained active throughout the pandemic but movers may have taken into account the effects of the economic downturn, as research shows that many people chose to move to a more affordable area in 2020.
People who moved last year went to areas where houses were tens of thousands of dollars cheaper and 33-square feet larger on average, according to United Van Lines data analyzed by Zillow.
The top five metro areas where people fled from were Chicago, New York, Los Angeles, San Diego and San Francisco. On the other hand, the top five markets where people moved in were Phoenix, Charlotte, Austin, Dallas, and Sarasota, Fla.
The difference between the average home values in the cities where people left ($419,344) and where they moved ($392,381) was about $27,000.
NEW HOME LISTING PRICES SEE 43RD STRAIGHT WEEK OF DOUBLE-DIGIT GROWTH
In order to get a larger home at a better value, Zillow researchers noted that many people moved to the suburbs. That trend was exacerbated by the pandemic, which allowed more individuals to permanently telework, and therefore, proximity to an office location was no longer a motivating factor in location choice.
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Finding lower home prices is a challenge in the current housing market, where prices have been consistently climbing.
As previously reported by FOX Business, the median listing price of new homes rose by 13.6% year over year for the week beginning June 5, marking the 43rd consecutive week double-digit increases.
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The median home listing price in May was $380,000 – a record-high.
Inventory remains constrained, which is contributing to price increases. Active inventory during the week of June 5 was down 46% year over year, according to Realtor.com. And available houses are moving quickly – staying on the market for an average of 39 days in May.