The majority of out-of-towners had higher purchasing power than locals in the cities they were looking to move to in 2020, and they were driving up home prices, according to a Redfin report released Thursday.
In 2020, Nashville had the largest budget gap between out-of-towners and locals. The average housing budget for people moving to the state capital was $719,500, 48% higher than the $485,500 average budget for locals, according to the report.
Redfin used the average maximum list-price filters for home searches as an indicator of the average budget. This analysis only included the U.S. cities with at least 3,000 Redfin.com home searchers from inside the metro and 3,000 from outside the metro last year.
In 31 of the 34 cities the brokerage analyzed, out-of-towners had bigger budgets than local buyers. The only three cities where locals had higher budgets than migrants were all in California’s Bay Area: San Francisco, San Jose and Fremont.
Atlanta came in second, where out-of-towners had an average budget of $698,000, 33% higher than local buyers. It was followed by Austin, Texas, where out-of-towners had an average of $852,500 as the cap of their housing budget, 32% higher than locals.
Article Source: Mansion Global