Aug 9, 2022 - Real Estate

Out-of-towners are wealthier than locals

Data: Redfin; Chart: Baidi Wang/Axios
Data: Redfin; Chart: Baidi Wang/Axios

The average newbie moving to Austin has a home buying budget that's about 7.6% higher than locals.

Why it matters: Central Texas became a destination for those looking to move during the pandemic, which made housing prices and the rental market soar beginning in 2020.

The sorta-good news: The budget gap in Austin has drastically narrowed since the beginning of the pandemic, when the average out-of-towner had an $852,500 budget, 32% higher than local residents, Redfin previously found.

  • "Migration into both Nashville and Austin has slowed significantly in 2022, largely because out-of-town buyers pushed up prices," according to the report. "Prices are up 44% in Nashville and 57% in Austin since the beginning of the pandemic."
  • Now, the average out-of-towner comes to Austin with a $964,811 budget. The median home price in June was $536,000.

Yes, but: Residents from more expensive cities — usually New York City and Los Angeles — are eyeing other Texas metros where they can afford to live closer to city centers.

  • Out-of-towners have an average maximum budget of about $815,000 for a house in Dallas compared to the average local's maximum budget of $667,000.
  • Houston newbies have an average budget of $608,902, which is roughly 17.5% higher than local's budget.

By the numbers: Philadelphia saw the largest gap between migrants and locals, with newcomers having nearly 40% more in their housing budget than long-time residents. Dallas ranked fourth.

  • "The market looks different for locals, many of whom are priced out or driven to search in the suburbs because both home prices and mortgage payments have risen significantly in the last year," Redfin deputy chief economist Taylor Marr wrote in the analysis.

For the record: Immediately driving up the cost of living is not the best way to make friends with your new neighbors.


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