Sep 7, 2022 - Real Estate

Richmond home prices jump faster than incomes

Growth in median <span style="color: #00ab58; font-weight: 900;">homebuyer income</span> and <span style="color: #ff942f; font-weight: 900; white-space: nowrap;"> home price</span>
Data: Redfin analysis of HMDA data; Chart: Kavya Beheraj and Skye Witley/Axios

Richmond homebuyers make more money than they did before the pandemic — but it's not enough to keep up with the leap in home prices.

By the numbers: The median income for Richmond homebuyers in 2021 was $85,000, up 4% from 2019, according to a Redfin analysis of mortgage data in the 100 largest metro areas nationwide.

  • Meanwhile, median home prices surged 17% during that time, going from $270,000 in 2019 to $315,000 in 2021.

What's happening: Remote workers have been moving from pricey job centers during the pandemic and intensifying competition, with their higher salaries in many previously inexpensive cities.

Threat level: The trend isn't slowing down. The number of buyers nationwide looking to relocate hit an all-time high in July, Redfin reported.

  • Rising interest rates, inflation and permanent work from home pushed even more home shoppers to look for more affordable cities.

Zoom in: Of Redfin users searching for homes in Richmond, 37% were from outside of the area in the second quarter of 2022, per Redfin's migration map.

  • Just over half of the searches are coming from folks in Washington, D.C.
  • Comparatively, only 9% of searches for D.C. houses are from outside the District.

The latest: The median home price in Richmond continues to climb, hitting $350,000 thus far this year, even as home sales slow.


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