Where are Potential Homebuyers Searching?

Where people live and where they look for homes is not as easy a picture to paint as one might think. A new report by Zillow shows that while most Americans never venture far from where they grew up, a sizable portion of those shopping online for new homes are looking far afield, where the jobs and most sought-after populations are.

According to Zillow, on a national basis almost 42 percent the homes users look at on its website are located outside their metropolitan area. For the most part, users looking beyond where they live are looking at hot job market areas, such as San Francisco. The jobs trigger a significant number of views, Zillow reported, even though affordability may be a barrier to staying there long term.

In the San Francisco metro, the median home value is just over $800,000 and the median rental payment is $3,400 a month.

“The reverse is happening in booming Portland and Seattle markets,” the report stated. “Both are highly desirable among outsiders and places where residents don't seem to want to leave.”

Homes in Portland get more page views from outside the area than 94 percent of other markets, Zillow reported. Meanwhile, while just 29 percent of views originating in Portland are of homes outside of the area.

San Antonio, Austin, and New Orleans led the list of cities from which residents are looking elsewhere. About 54 percent of page views from San Antonio were directed somewhere else‒‒often at nearby Austin, which also gets a substantial number of views from far away.

“This doesn’t mean San Antonio is particularly repulsive,” Zillow reported. Rather, as San Antonio, known as “Military City, USA,” families may actually just be looking to relocate following active military duty.

“We look at home searches to get a read on people's housing aspirations and how they feel about housing and quality of life in their city, as well as their actual intentions to move into or out of a given area,” said Svenja Gudell, chief economist at Zillow. “If someone lives in an expensive area, they may look for another place to live that is less expensive but offers a similar quality of life.”

Home shoppers in less expensive markets, Gudell said, may weigh sacrificing space or cost in favor of a better job in a more expensive locale. “Home search trends, in time, translate into actual moves and migration, which will have a lasting impact on the economy and landscape.”