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More Migrating Away From Crowded Metros

CoreLogic has analyzed homebuyer migration trends in 2020 in its “2020’s Hottest Cities for Homebuyers” report, which found that an increasing number of homebuyers are moving away from large coastal areas like New York, Los Angeles, and San Francisco, to coastal metro areas in Florida, including Lakeland and Tampa.

Those polled for the study cited a mix of events during the pandemic—including flexible work situations, low federal interest rates, and the need for financial savings—led to a mass migration away from crowded, expensive metro areas.

The top 10 metros where the most departed from in 2020 included:

  • New York-Newark-Jersey City, New York-New Jersey-Pennsylvania
  • Los Angeles-Long Beach-Anaheim, California
  • San Francisco-Oakland-Berkeley, California
  • San Jose-Sunnyvale-Santa Clara, California
  • Washington-Arlington-Alexandria, D.C.-Virginia-Maryland-West Virginia
  • Miami-Fort Lauderdale-Pompano Beach, Florida
  • Seattle-Tacoma-Bellevue, Washington
  • Boston-Cambridge-Newton, Massachusetts-New Hampshire
  • Chicago-Naperville-Elgin, Illinois-Indiana-Wisconsin
  • San Diego-Chula Vista-Carlsbad, California

And while those 10 metros saw the greatest migration away from, Florida was a destination for many, with the top 10 areas homebuyers sought out included:

  • Riverside-San Bernardino-Ontario, California
  • Lakeland-Winter Haven, Florida
  • Myrtle Beach-Conway-North Myrtle Beach, South Carolina-North Carolina
  • Las Vegas-Henderson-Paradise, Nevada
  • Tampa-St. Petersburg-Clearwater, Florida
  • Port St. Lucie, Florida
  • Jacksonville, Florida
  • San Antonio-New Braunfels, Texas
  • Deltona-Daytona Beach-Ormond Beach, Florida
  • Dallas-Fort Worth-Arlington, Texas

“The pandemic created a perfect recipe for consistently employed Americans,” said Archana Pradhan, Archana Pradhan CoreLogic’s Principal Economist. “If it had been any other mix of events, for example, if low housing inventory was coupled with job inflexibility, we wouldn’t have had such a large group of homebuying consumers feeling empowered to make bold moves in their living situations.”

The metros that topped the list of highest in-migration activity had similar draws for homebuyers, offering more affordability due to lower costs-per-square-foot, lower property taxes, and no state income taxes. Additionally, warmer, sunnier climates with strong outdoor lifestyle amenities were common in the top metros for in-migration.

“Buyers are moving from both coasts, primarily from California and New York, to Texas,” said Bill Clarkson, a Real Estate Agent with Century 21 Judge Fite Company in Dallas in the report. “They’re like kids in a candy shop, typically cash buyers and quickly learn that the square footage and lot size is beyond their expectations compared to what they are used to seeing in their home states.”

The busiest months for relocation were between April 2020 and December 2020, according to the report. Home loan applications for purchases rose 11% in 2020 compared to 2019. An April 2021 CoreLogic consumer homebuyer study showed an increase in confidence in purchasing power, as well. Ninety percent of homeowners and renters said they were somewhat or extremely likely to qualify for a mortgage.

About Author: Eric C. Peck

Eric C. Peck has 20-plus years’ experience covering the mortgage industry, he most recently served as Editor-in-Chief for The Mortgage Press and National Mortgage Professional Magazine. Peck graduated from the New York Institute of Technology where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career with Videography Magazine before landing in the mortgage space. Peck has edited three published books and has served as Copy Editor for Entrepreneur.com.
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