by Jason Parker — June 8, 2021
An analysis from real estate data firm Zillow says that the average long-distance mover, or those movers who leave one metropolitan area for a new one, relocated into Raleigh zip codes where average home values were nearly $70,000 less from the average home price in the zip codes they were departing.
And the houses they purchased in Raleigh were much bigger, by 370 square feet, on average, than the homes they left.
The numbers are based on moving data from North American Van Lines and are being publicized as the Triangle braces for an influx of high-paying tech jobs from companies such as Apple, Google, Fidelity and numerous biotech firms.
“When a significant number of new jobs are added to a region, it naturally attracts new homebuyers,” said Chris Glynn, principal economist at Zillow, in an interview with WRAL TechWire. “What makes the Triangle so desirable is that it offers relatively affordable housing, a strong economy, world-class universities, and a high quality of life.
“We’re seeing evidence of that growth in the housing market,” he added.
Not that Raleigh homes are cheap. In fact, prices are going up. Fast.
Zillow data shows that the typical Raleigh home is now worth $327,048, up 12.3% or $35,700 over last April and 1.5% since March, which is outpacing the national average that Zillow tracks. Nationally, home appreciation is up 11.6% compared to this time last year, said Glynn.
“It is likely that the addition of new jobs will contribute to strong demand for housing overall, although it isn’t possible to isolate the impact on home values,” said Glynn. “We know that the Triangle sits at the intersection of two powerful demand trends in housing: relative affordability and sunshine.”
Zillow calls the ongoing confluence of social, demographic, and economic factors that are spurring increasing demand for housing the “Great Reshuffling.” They say now, more than at any other previous time, there are people considering moving away from larger cities where housing costs and prices have been high, in comparison to other markets across the country. Their data analysis showed the five markets with the most outbound movers were Chicago, New York City, Los Angeles, San Diego, and San Francisco.
Meanwhile, people who moved from Raleigh to other metropolitan areas, saw the reverse.
For homes 272 square feet smaller on average, these movers landed in zip codes where average home values are more than $51,000 higher than the neighborhood they departed.
“More affordable, medium-sized metro areas across the Sun Belt saw significantly more people coming than going, especially from more expensive, larger cities farther north and on the coasts,” said Zillow senior economist Jeff Tucker in the report. “The pandemic has catalyzed purchases by millennial first-time buyers, many of whom can now work from anywhere.”
A corresponding Zillow study also found that Charlotte was among the top three regions that saw the highest net inbound moves during the first 11 months of 2020. Many of these out-of-market movers coming from the New York City metropolitan area.
Zillow’s survey data found that 7 in 10 people would be comfortable moving, once vaccine distribution is widespread, and 11% of people said they’d already moved during the pandemic.
“Remote and flexible work arrangements have made places like Raleigh a realistic destination for households looking to spend a little less on housing costs and enjoy year-round outdoor living,” said Glynn.
Original Source: WRAL TechWire