Realtor.com® Reveals Top Destinations for Out-of-State Home Shoppers

Rhea-AI Summary

In Q1 2022, 40.5% of home buyers on Realtor.com® showed interest in out-of-state listings, up from 36.4% in 2021. Top relocation destinations included El Paso, Albuquerque, and Washington, D.C. The shift is attributed to rising affordability concerns and increased remote work flexibility. Despite surging demand, listing prices in many top destinations remain below the national average of $206 per square foot. Notably, McAllen, Texas, offered the most affordable price at $125 per square foot, even as out-of-state interest surged, particularly from northern cities like New York.

Positive

• 40.5% rise in out-of-state buyer interest year-over-year.
• Top destinations reflect affordability and remote work trends.
• Six of the top ten relocation areas are in the affordable Sun Belt.

Negative

• Intensifying cost pressures could deter potential buyers.
• Median listing price per square foot in top markets often exceeds national averages.

In 2022 Q1, the share of buyers interested in out-of-state listings grew 4.1 percentage points year-over-year nationwide; six of the top 10 relocation destinations were in the Sun Belt

SANTA CLARA, Calif., May 3, 2022 /PRNewswire/ -- As buyers explore ways to up their odds of success in the face of intensifying cost pressures, new research indicates that home shopper interest in relocating is on the rise. In the first quarter of 2022, 40.5% of prospective buyers on Realtor.com^® viewed home listings located outside of their current state, compared to 36.4% in 2021 and 33.4% in 2020.

Where are they heading? The top 10 destinations, in rank order¹, were: El Paso, Texas, Albuquerque, N.M., Washington, D.C., Birmingham, Ala., Hartford, Conn, Omaha, Neb., McAllen, Texas, New York, N.Y., Augusta, Ga. and Greensboro, N.C. (see table below).

"After two years of pandemic remote work, offices have started to reopen, but instead of seeing a slowdown in the number of people interested in homes out of state, we're seeing an acceleration," said Realtor.com^® Chief Economist Danielle Hale. "Taking a closer look at the top destinations, we see some very different trends driving the desire to live out of state and home shoppers' diverse needs. First, affordability remains a key focus for buyers, with demand for less expensive areas surging in recent months as climbing inflation and mortgage rates compound cost pressures faced by buyers. Next, flexibility enabled by broader adoption of remote work has fueled interest in sunnier climates, such as the Sun Belt. And finally, some people are simply ready to get back to normal, with some buyers' desire to live downtown lifestyles driving two big cities into the top 10."

With tighter budgets, buyers expand search areas in search of affordability

While Americans are expected to have a better chance to find a home in 2022, rapidly intensifying cost pressures are creating a greater sense of urgency for many buyers to find a home in their budget. With climbing inflation and mortgage rates compounding record-high for-sale home prices and rents, 2022 home shoppers have plenty of motivation to explore relatively affordable markets where higher incomes may yield more purchasing power.

And January-March search trends suggest many prospective buyers are doing just that. In eight of the top 10 relocation destinations, listing prices per square foot were lower than the national average ($206). Additionally, although rising demand is fueling double-digit annual growth in the per square foot price in the majority (9) of these markets, half posted lower gains than the 2022 Q1 national rate (+15.7%). For instance, the No. 7 market of McAllen, Texas offered the most affordable home price per square foot among the top 10, at a median of $125. While that represented an increase of 13.8% year-over-year, McAllen's median listing price per square foot was still lower than in its top source of out-of-state buyer demand: Washington, D.C. ($277).

With more flexibility, some home shoppers migrate toward warmer climates

Cost pressures may be a forcing factor for some out-of-state home shoppers, but others could be approaching relocation as an opportunity to explore living in areas they couldn't have before COVID, with this flexibility enabled by trends like the rise in remote work. 2022 Q1 Realtor.com^® search trends suggest rising numbers of home shoppers are potentially heading to areas offering warmer climates. In fact, Sun Belt metros accounted for six of the top 10 relocation destinations, all of which posted bigger annual gains in the out-of-state share of listings viewers than the national rate, led by El Paso (+11.6 percentage points).

Further illustrating the rise in demand for housing markets offering warmer climates, five of these six Sun Belt metros counted northern cities as top sources for out-of-state demand. For example, Washington, D.C. and New York, N.Y. were among the top three areas where home shoppers were searching for homes in No. 9 market Augusta, Ga. and No. 10 Greensboro, N.C.

As some buyers pursue the downtown life, big city demand returns

Although some of the top relocation destinations reflect trends that surfaced during COVID, very different factors could potentially be driving demand in others. With offices reopening and everyday life getting back into full swing in many downtown areas, major metros accounted for two of the top 10 relocation destinations: Washington, D.C. at No. 3 and New York, N.Y. at No. 8. Additionally, the No. 5 spot went to Hartford, Conn., which some may view as a commuter city to New York.

Going further back in the Realtor.com^® data history, to its 2020 Q1 Cross-Market Demand Report, D.C. and N.Y. were among the 10 where the onset of COVID was most pronounced and home shopping patterns showed the impact. However, in all of these metros, 2022 Q1 data shows interest from home shoppers from other states has not only returned to year-over-year growth, but is at the highest level of any quarter since 2018 Q1.

Hale added, "In addition to the full rebound of out-of-state demand to New York, Washington D.C. and Hartford, the fact that these markets made the top 10 destinations in 2022 Q1 signals the return of some pre-COVID norms. It simply comes down to stage of life, which housing decisions are often tied to, as big cities have historically seen strong inbound demand from young buyers from all over the country looking to establish themselves."

2022 Q1 Cross-Market Demand Metrics – Top 10 Relocation Destinations

Rank	Metro	2022 Q1 out-of- state share YoY (pct. pts.)	2022 Q1 out- of-state share	Top sources of out-of-state demand	2022 Q1 median listing price per sq. ft.
1	El Paso, Texas	11.59	48.4%	Phoenix, Ariz. Las Cruces, N.M. Los Angeles, Calif.	$140
2	Albuquerque, N.M.	11.31	49.8%	Denver, Colo. Phoenix, Ariz. Los Angeles, Calif.	$182
3	Washington, D.C.	10.27	50.7%	New York, N.Y. Philadelphia, Penn. Baltimore, Md.	$277
4	Birmingham, Ala.	8.31	40.6%	Atlanta, Ga. Seattle, Wash. Washington, D.C.	$144
5	Hartford, Conn.	7.83	38.8%	New York, N.Y. Boston, Mass. Providence, R.I.	$189
6	Omaha, Neb.	7.60	43.9%	Washington, D.C. Chicago, Ill. Denver, Colo.	$157
7	McAllen, Texas	7.49	34.9%	Washington, D.C. Los Angeles, Calif. Chicago, Ill.	$125
8	New York, N.Y.	7.48	34.1%	Washington, D.C. Philadelphia, Penn. Miami, Fla.	$600
9	Augusta, Ga.	7.02	59.6%	Atlanta, Ga. Washington, D.C. New York, N.Y.	$135
10	Greensboro, N.C.	6.80	36.2%	Washington, D.C. Atlanta, Ga. New York, N.Y.	$145

 

2022 Q1 Cross-Market Demand Metrics: Out-of-State Viewers – 100 Largest U.S. Markets

Metro Area	Out-of-state share YoY (pct. pts.)	2022 Q1 out-of-state share	2022 Q1 median listing price per sq. ft.	Median listing price per sq. ft. YoY
Akron, Ohio	3.57	23.8%	$113	10.7%
Albany-Schenectady-Troy, N.Y.	4.29	21.9%	$169	0.6%
Albuquerque, N.M.	11.31	49.8%	$182	18.5%
Allentown-Bethlehem-Easton, Pa.-N.J.	2.86	35.1%	$166	13.3%
Atlanta-Sandy Springs-Roswell, Ga.	1.77	31.8%	$177	18.0%
Augusta-Richmond County, Ga.-S.C.	7.02	59.6%	$135	17.4%
Austin-Round Rock, Texas	-0.64	30.2%	$267	39.6%
Bakersfield, Calif.	2.53	11.7%	$205	18.8%
Baltimore-Columbia-Towson, Md.	6.58	39.7%	$189	6.7%
Baton Rouge, La.	5.24	38.4%	$150	10.3%
Birmingham-Hoover, Ala.	8.31	40.6%	$144	12.1%
Boise City, Idaho	1.59	59.2%	$274	20.2%
Boston-Cambridge-Newton, Mass.-N.H.	2.98	35.0%	$407	12.6%
Bridgeport-Stamford-Norwalk, Conn.	4.32	50.8%	$320	5.6%
Buffalo-Cheektowaga-Niagara Falls, N.Y.	5.63	25.4%	$138	7.6%
Cape Coral-Fort Myers, Fla.	0.78	62.3%	$239	35.6%
Charleston-North Charleston, S.C.	3.55	67.5%	$225	11.0%
Charlotte-Concord-Gastonia, N.C.-S.C.	4.84	46.4%	$199	19.9%
Chattanooga, Tenn.-Ga.	4.26	56.4%	$169	18.2%
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.	3.53	24.7%	$187	5.6%
Cincinnati, Ohio-Ky.-Ind.	4.97	37.5%	$148	12.0%
Cleveland-Elyria, Ohio	4.10	25.7%	$114	10.5%
Colorado Springs, Colo.	-0.21	42.0%	$228	23.5%
Columbia, S.C.	5.68	62.0%	$141	19.4%
Columbus, Ohio	4.26	23.9%	$168	13.8%
Dallas-Fort Worth-Arlington, Texas	2.14	25.3%	$190	21.0%
Dayton, Ohio	3.73	27.8%	$121	12.9%
Deltona-Daytona Beach-Ormond Beach, Fla.	3.35	48.0%	$205	20.2%
Denver-Aurora-Lakewood, Colo.	1.97	35.1%	$281	14.6%
Des Moines-West Des Moines, Iowa	5.38	39.4%	$211	14.8%
Detroit-Warren-Dearborn, Mich	3.65	20.3%	$158	2.5%
Durham-Chapel Hill, N.C.	4.48	40.6%	$229	23.3%
El Paso, Texas	11.59	48.4%	$140	16.6%
Fresno, Calif.	1.30	11.9%	$232	17.2%
Grand Rapids-Wyoming, Mich	3.33	27.1%	$168	11.5%
Greensboro-High Point, N.C.	6.80	36.2%	$145	15.4%
Greenville-Anderson-Mauldin, S.C.	4.30	55.8%	$151	17.9%
Harrisburg-Carlisle, Pa.	2.12	28.0%	$141	9.7%
Hartford-West Hartford-East Hartford, Conn.	7.83	38.8%	$189	16.1%
Houston-The Woodlands-Sugar Land, Texas	1.29	37.8%	$165	17.5%
Indianapolis-Carmel-Anderson, Ind.	0.43	30.9%	$136	17.2%
Jackson, Miss.	4.86	41.3%	$133	11.3%
Jacksonville, Fla.	5.68	47.0%	$200	24.1%
Kansas City, Mo.-Kan.	5.12	48.4%	$177	14.1%
Knoxville, Tenn.	3.55	52.7%	$179	25.0%
Lakeland-Winter Haven, Fla.	4.10	45.6%	$183	29.4%
Las Vegas-Henderson-Paradise, Nev.	0.21	55.3%	$253	28.7%
Little Rock-North Little Rock-Conway, Ark.	4.65	48.7%	$122	9.7%
Los Angeles-Long Beach-Anaheim, Calif.	2.23	25.5%	$561	10.4%
Louisville/Jefferson County, Ky.-Ind.	5.32	41.6%	$151	13.2%
Madison, Wis.	2.70	32.8%	$199	15.4%
McAllen-Edinburg-Mission, Texas	7.49	34.9%	$125	13.8%
Memphis, Tenn.-Miss.-Ark.	5.32	51.5%	$145	19.7%
Miami-Fort Lauderdale-West Palm Beach, Fla.	3.25	37.4%	$312	18.9%
Milwaukee-Waukesha-West Allis, Wis.	2.23	30.6%	$170	7.5%
Minneapolis-St. Paul-Bloomington, Minn.-Wis.	3.02	25.5%	$178	-1.1%
Nashville-Davidson--Murfreesboro--Franklin, Tenn.	4.13	54.0%	$233	20.8%
New Haven-Milford, Conn.	4.30	37.1%	$201	18.4%
New Orleans-Metairie, La.	6.01	43.5%	$169	9.0%
New York-Newark-Jersey City, N.Y.-N.J.-Pa.	7.48	34.1%	$600	43.9%
North Port-Sarasota-Bradenton, Fla.	0.60	58.8%	$268	33.0%
Oklahoma City, Okla.	3.66	44.9%	$154	17.0%
Omaha-Council Bluffs, Neb.-Iowa	7.60	43.9%	$157	12.3%
Orlando-Kissimmee-Sanford, Fla.	4.33	41.8%	$207	25.1%
Oxnard-Thousand Oaks-Ventura, Calif.	1.82	14.6%	$477	16.1%
Palm Bay-Melbourne-Titusville, Fla.	4.10	46.9%	$201	20.9%
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.	6.18	36.8%	$191	9.4%
Phoenix-Mesa-Scottsdale, Ariz.	-0.89	45.3%	$261	24.3%
Pittsburgh, Pa.	3.70	27.7%	$148	3.4%
Portland-South Portland, Maine	4.30	63.4%	$296	14.3%
Portland-Vancouver-Hillsboro, Ore.-Wash.	2.34	47.6%	$296	16.0%
Providence-Warwick, R.I.-Mass.	3.36	46.4%	$273	14.1%
Raleigh, N.C.	4.07	39.1%	$197	21.6%
Richmond, Va.	6.06	32.2%	$186	14.1%
Riverside-San Bernardino-Ontario, Calif.	2.50	17.8%	$300	19.9%
Rochester, N.Y.	5.60	23.7%	$126	-4.2%
Sacramento--Roseville--Arden-Arcade, Calif.	3.00	13.3%	$338	17.2%
Salt Lake City, Utah	3.47	38.2%	$222	15.1%
San Antonio-New Braunfels, Texas	3.61	27.5%	$177	19.2%
San Diego-Carlsbad, Calif.	2.90	26.9%	$531	18.8%
San Francisco-Oakland-Hayward, Calif.	3.05	18.2%	$691	8.7%
San Jose-Sunnyvale-Santa Clara, Calif.	2.31	16.1%	$834	11.6%
Scranton--Wilkes-Barre--Hazleton, Pa.	1.45	32.0%	$109	12.4%
Seattle-Tacoma-Bellevue, Wash.	2.20	44.3%	$397	20.2%
Spokane-Spokane Valley, Wash.	1.64	34.8%	$223	22.6%
Springfield, Mass.	-0.45	33.3%	$200	10.5%
St. Louis, Mo.-Ill.	3.15	34.1%	$145	9.7%
Stockton-Lodi, Calif.	3.17	9.0%	$314	22.1%
Syracuse, N.Y.	4.70	23.0%	$113	4.6%
Tampa-St. Petersburg-Clearwater, Fla.	3.04	45.5%	$218	28.3%
Toledo, Ohio	1.84	30.7%	$107	2.3%
Tucson, Ariz.	0.63	52.8%	$206	20.9%
Tulsa, Okla.	2.76	47.4%	$137	18.1%
Urban Honolulu, Hawaii	0.62	67.0%	$624	14.1%
Virginia Beach-Norfolk-Newport News, Va.-N.C.	4.99	53.1%	$181	9.7%
Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.	10.27	50.7%	$277	9.8%
Wichita, Kan.	5.25	37.1%	$115	14.1%
Winston-Salem, N.C.	6.75	35.8%	$139	12.7%
Worcester, Mass.-Conn.	3.94	31.4%	$228	10.0%
Youngstown-Warren-Boardman, Ohio-Pa.	4.59	41.1%	$86	8.5%

Methodology

This release focuses on year-over-year trends in prospective buyer demand from out of state, nationally and in the 100 largest markets, based on Realtor.com^®'s Cross-Market Demand Report for 2022 Q1 (Jan.-March 2022), which analyzes online traffic trends for for-sale properties on Realtor.com^®. Read the full report to find additional insights into home shopper migration patterns across the 300 largest markets.

About Realtor.com^®

Realtor.com^® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com^® pioneered the world of digital real estate more than 25 years ago, and today through its website and mobile apps offers a marketplace where people can learn about their options, trust in the transparency of information provided to them, and get services and resources that are personalized to their needs. Using proprietary data science and machine learning technology, Realtor.com^® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com^® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com^®.

Media Contact
rachel.conner@move.com 

¹ In this release, which focuses on the 100 largest U.S. markets, top relocation destinations are defined as metros that posted the biggest annual gains (percentage points) in the share of listing viewers from out of the state in 2022 Q1 (January-March).

 

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SOURCE Realtor.com

FAQ

What percentage of home buyers showed interest in out-of-state listings in Q1 2022?

In Q1 2022, 40.5% of home buyers on Realtor.com® expressed interest in out-of-state listings.

What were the top relocation destinations for home buyers in Q1 2022?

The top relocation destinations in Q1 2022 included El Paso, Albuquerque, and Washington, D.C.

How has remote work influenced home buyer relocation trends?

Remote work flexibility has increased interest in relocating to warmer climates, particularly in the Sun Belt.

What is the median listing price per square foot for McAllen, Texas, in Q1 2022?

McAllen, Texas, had a median listing price per square foot of $125 in Q1 2022.

How do listing prices in top relocation markets compare to the national average?

Listing prices in eight of the top ten relocation destinations were lower than the national average of $206 per square foot.