Out-of-towners buy more expensive houses and pay higher premiums than locals. Differences in home-buying finances between migrants and locals in 11 popular migration destinations.
Out-of-Towners Pay More than Locals
Migrant home buyers (buyers who search for homes online from a different metro area) buy more expensive homes in the same area in which the local buys and they pay more over the asking price than locals pay.
For example, according to an analysis of migrant versus local home buyers from July 2020 through June 30 2021 just released by Redfin, typical out-of-towners relocating to Austin paid $470,000 for a home whereas locals paid $447,500. Likewise, typical out-of-towners relocating to Austin paid an average of +7.8% above asking price while locals paid an average of +3.7% above asking.
Migrants also make higher down payments than locals. Relocating out-of-towners put down a median amount of $111,500 as a down payments whereas locals put down a median amount of $83,725.
Migrants Often Relocating from More Expensive Areas
According to Austin Redfin agent Andrew Vallejo, “People moving into Austin from out of town tend to come with a lot of cash from selling homes in expensive West Coast cities – especially the Bay Area. And those of them who can work remotely often come with high West Coast salaries, too. They typically have a lot more buying power than locals and they can afford to search for and ultimately buy bigger, pricier homes.”
The Result? Higher Prices in Popular Migration Destinations
Home prices in Austin have skyrocketed +43% over the last year. Even with that mindboggling price jump and a typical home selling for $485,000 in June, $485,000 is MUCH MORE affordable than the median sale price of $1.59M in San Francisco.
The same is true in Boise ID. According to Redfin, the net inflow into Boise has doubled since before the onset of the COVID pandemic. Median home prices in Boise soared +40% y/y to $475,000 in June.
Out-of-Towners vs Locals from 7/1/2020 through 6/30/2021
Med. Sale Med. List Med. Down Premium/Discount
Payment
Atlanta
Local $425K $425K $86K 0.2%
Migrant $429K $425K $108K 0.6%
Austin
Local $447,500 $425K $83,725 3.7%
Migrant $470K $439,900 $111,500 7.8%
Boise
Local $439,250 $439,250 $57,275 -0.2%
Migrant $448K $444,900 $92K 2.0%
Cape Corral FL
Local $349K $349,900 $15K -1.4%
Migrant $340K $360K $89,750 -2.2%
Dallas
Local $388K $385K $69.510 0.8%
Migrant $438,450 $425K $97,500 2.5%
Las Vegas
Local $419,500 $419,750 $50K 0.3%
Migrant $403K $399,450 $79,740 0.4%
Miami
Local $450K $454,500 $37,500 -3.3%
Migrant $495,500 $519K $51,250 -3.4%
Orlando
Local $355,750 $375,00 $32K -1.3%
Migrant $375K $375K $71,100 -0.5%
Phoenix
Local $415K $414,425 $71,021 1.2%
Migrant $421K $515K $80,400 1.9%
Sacramento
Local $560K $545K $111,500 2.3%
Migrant $627,500 $615,950 $145,221 3.0%
Tampa FL
Local $380K $375K $25,950 0.4%
Migrant $367K $365K $73,600 0.9%
Thanks to Redfin.
