Homeowners from California, Illinois, and New York have recently started flocking to Texas. The cities of Austin, San Antonio, and Dallas have experienced an influx of new residents that are starting new jobs and purchasing homes.
This is not big news to real estate agents, wholesalers, and real estate investors. We have witnessed many of our clients sell their investment properties to new out of state residents. While this news certainly isn’t groundbreaking, it does mean big things for those of us in real estate.
This trend does not show any signs of slowing down anytime soon. The continued demand for new and renovated housing in Texas is great news. Investors can expect to see their property’s equity grow and their rehab projects sell faster.
Thousands of homeowners in San Francisco, Los Angeles and Chicago are headed out of town.
And many of them are on the way to Atlanta, Phoenix and Dallas.
Home sales firm Redfin looked at migration by homeowners away from high-cost metro areas to more affordable markets. And the Dallas area was on the top 10 list of U.S. cities where residents are moving to find more affordable housing and living costs, researchers with the residential brokerage firm found.
The biggest share of newcomers to Dallas were from Los Angeles. Redfin said that almost a quarter of its home searches in the Dallas area were by people relocating to the area.
Austin and Houston are also getting a lot of home purchases by out-of-state movers.
A quarter of Redfin’s customers in the third quarter were moving to different metro areas.
“Rising mortgage rates are exacerbating affordability issues that have been driving people out of expensive coastal metros for the past few years,” Redfin chief economist Daryl Fairweather said in the report. “With [interest] rates no longer near historic lows, buyers are increasingly cost-conscious, seeking more affordable homes in low-tax states in the South and middle of the country.”