Many Americans Moved to Cheap Housing Markets In 2020 | Business

Los Angeles — Many Americans who moved last year moved to areas with larger and cheaper homes on average.

On average, people who moved to another city in 2020 had an average zip code that was nearly $ 27,000 lower than their previous zip code, according to Zillow.

People who relocated last year also moved their average homes to a zip code 33 square feet larger than their predecessors, according to a real estate information firm.

Zillow has produced findings based on an analysis of data from tens of thousands of transfers across the country processed by relocation company North American Van Lines.

The data do not show how many of the movers ended up buying a home, but many Americans have the opportunity to flee the more costly metropolitan areas in pandemics and remote areas. It suggests that we have taken advantage of the widespread acceptance of our work.

Home prices have risen steadily over the last decade, but 2020 is at least the first year since 2016, with people not moving to areas where housing costs are higher than before, on average. Zillow discovered.

Jeff Tucker, senior economist at Zillow, said:

A similar trend was seen in a Redfin survey of people who moved to another metropolitan area between March 2020 and 12 months. Currently, about two-thirds of respondents have the same or less housing costs, and about the same number say new homes are the same or larger. The survey consisted of 500 people using the websites of online brokerage firms.

Many Americans continued to move to more affordable and less densely populated areas during the first three months of the year, according to about 300,000 transfers processed by transfer technology company Updater.

The company favors expensive metropolitan areas such as New York, Los Angeles and Boston, or Midwestern cities such as Cleveland and Indianapolis, mainly in southern and western cities such as Nashville, Phoenix, Dallas and Tampa, Florida. And discovered that he continued to lose his inhabitants.

Still, spills from dense cities such as New York, San Francisco and Boston slowed in the first quarter, the company said.

High prices, lack of housing on the market, and the ability to work in remote areas have eagerly aspired many Americans to move from dense urban areas in the northeast, especially New York City, to the suburbs last year. People have migrated.

According to Zillow’s analysis, some of the metropolitan areas with the most net outbound movements last year were Chicago, Los Angeles, New York, San Diego, and San Francisco. Among the cities with the highest net profits for residents are Phoenix, Dallas, Austin, Texas, Charlotte, North Carolina and Sarasota, Florida.

The cities of Sunbelt in the south and west have been hotspots for relocation for years, as many Americans demand relatively affordable housing and a warm climate. And, of course, snowbirds and retirees from the northeast and midwest have long flocked to Florida, Arizona, and Nevada, among other Sunbelt destinations.

According to Tucker, the pandemic strengthened existing migration patterns in many ways, accelerating established trends, including the tendency of people to move from the northeast and midwest to the Sun Belt.

The wave of relocation last year may have occurred in the hottest housing market, especially benefiting the relocation of homeowners. Competition would have helped boost their selling prices, but moving to cheaper areas would probably put them in a position to buy larger homes at lower cost.

Nationwide, according to Zillow, the average zip code home price with a net resident departure was $ 419,344, while the average zip code home with a net increase in occupancy was $ 392,281, almost 7%. It’s getting lower. Its dynamics reflect more movement in metropolitan areas where home prices tend to be higher.

For example, Los Angeles, who moved to another metropolitan area last year, can expect home prices on average $ 591,517 lower than Los Angeles, Zillow said. Typical home prices in areas where Los Angeles movers have moved were on average $ 614,793 higher than in the areas they moved to.

Zillow also found that the average size of a zip code house that people moved to last year increased from an average of 1,880 square feet to 1,913 square feet in their previous location. The square foot increase is about the same size as a walk-in closet, pantry, or bathroom.

“The move to a larger home is in line with this hypothesis that it’s being driven by home workers, as most of the time, one of the things they need is a home office,” Tucker said. Stated.

Many Americans Moved to Cheap Housing Markets In 2020 | Business

Source link Many Americans Moved to Cheap Housing Markets In 2020 | Business

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