Despite home prices in many once-affordable metros surging and pricing out many would-be buyers, a handful of popular migration destinations, mainly in the South, are still relatively affordable, according to a new report from Redfin.
The technology-powered real estate brokerage released a new study on Monday highlighting hotspots where migrating homebuyers could still find homes priced below the national median. Three popular Florida metros landed on the list, with home prices in Jacksonville, FL ($357,000) — the 13th most popular destination in the U.S. — sitting well below the national median price of $424,400.
Additionally, Tampa, FL ($370,000) and Cape Coral, FL ($419,000) — ranking No. 3 and No. 6 on the top 20 migration destinations in the U.S. — also made the list. Meanwhile, Miami — the No. 1 migration destination — saw a typical home sell for $475,000 last month, up from $330,000 in April 2020, at the onset of the pandemic.
While the destinations above may be affordable for people moving in from expensive areas like New York, San Francisco and Seattle, Redfin noted many locals have been priced out. Homebuyers in Tampa, for example, need to earn 47.8% more than they did a year ago to afford the median-priced home, and buyers in Atlanta need to earn 40.6% more.
“A lot of people are moving to Florida for the price point, beaches and quality of life, especially since the pandemic started,” said Eric Auciello, a Redfin team manager in Tampa. “For a buyer who sold their home in a place like New York for a million dollars, Tampa is affordable. They can get a nice home in a desirable neighborhood for around $550,000. But for locals looking in the $300,000 to $400,000 price point, there’s next to nothing for sale. Locals are turning to condos or moving to more affordable rural areas.”
Additionally, Virginia Beach — the 15th-most popular destination for buyers moving to a different metro — was the top hotspot, with a typical home selling for $315,0000 in April. A pair of Texas metros (San Antonio and Houston) where the typical home sells for $330,000 and $340,000, also ranked high in the report.
The report also found that thirty-two percent of homebuyers nationwide looked to move to a different metro area in April, which was close to the all-time high of 32.3% set in the first quarter.