Data from Realtor.com shows a rising trend in potential homebuyers considering relocation due to rising housing costs in their current neighborhoods. In the second quarter, 58.9% of home shoppers in the largest US metro areas searched for properties outside of their existing locations, marking a significant jump from pre-pandemic levels in 2019. Back then, less than half of online home shoppers were considering moving elsewhere.
High property prices and steep mortgage rates have made homeownership an unattainable dream for many Americans. Alongside high prices, other factors including career opportunities and lifestyle choices have influenced relocation trends. Danielle Hale, chief economist at Realtor.com, remarks, “Americans continue to consider a wider range of potential living locations, often looking beyond their current metro areas to better their financial situation and improve their lifestyle.”
Among all cities, San Jose, California led the trend with more than nine out of ten home shoppers looking for housing opportunities outside of the city. Many of these potential buyers were drawn to nearby San Francisco or further to Reno, Nevada. Meanwhile, areas such as Washington, D.C., Seattle, and Salt Lake City also saw a high number of residents seeking to purchase houses in other locations.
The job market significantly influences this trend; cities like Chicago, Boston, and New York saw an increase in residents wanting to move due to heightened unemployment levels. McAllen, Texas, experienced the largest surge with a 30% rise in out-of-market searches over the past six years, driven by a 6% unemployment rate and a near 40% increase in housing prices.
Conversely, some regions like Portland, Oregon; San Francisco; and Houston, saw the proportion of residents searching for properties out-of-market decrease compared to pre-pandemic times, although these still made up the majority of the searches.