As individuals across the United States flock to Florida and Texas, local residents are experiencing a housing squeeze and exploring alternative options for affordable homes.
According to Realtor.com, the average home prices in Texas have surged by 30% since 2019, while in Florida, they’ve risen by 42% during the same timeframe.
These residents are increasingly using Realtor.com to search for homes in other states, signaling their readiness to pursue affordability across the nation.
For Texans, the Midwest has recently gained popularity due to its overall affordability, as noted by Hannah Jones, Realtor.com’s economic research analyst. The trend of buyers seeking affordability is rapidly gaining momentum.
Texas has traditionally been the top destination for Americans seeking reasonably priced housing and a low cost of living. However, as Census data shows that 884,000 people moved to the state between April 2020 and July 2022, the cost of housing has skyrocketed. Many of these newcomers came from other states and could afford to pay more for houses, causing prices to surge, as reported by the Wall Street Journal.
Realtor.com’s data, based on the number of listings viewed within the state versus in other states, indicates that Texans are now looking at properties for sale within their own state less frequently than in the past. Last quarter, Wisconsin and Minnesota saw the largest increase in search volume from Texas year-over-year, followed by Tennessee, Colorado, and Missouri.
In the meantime, Floridians are also grappling with housing affordability issues and are turning their sights on neighboring states. Realtor.com reveals that searches for properties within Florida are decreasing, while searches from Florida for properties in North Carolina, Tennessee, Georgia, South Carolina, and Alabama are on the rise.
Holly Meyer Lucas, a Compass real estate agent based in South Florida, has witnessed numerous middle-class, native Floridians selling their homes to newcomers and relocating out-of-state since 2018 when tax reforms enticed many high earners to the state with no income tax. However, these native residents are now finding it challenging to return, as the cost of housing has substantially increased. Meyer Lucas explains that if they wish to return to their area, the option of an $800 per month mortgage is no longer available. Instead, they must pay nearly $4,000 per month to rent a similar type of home.
Driven by the pursuit of affordability, people are choosing to relocate where housing costs are within reach. Meyer Lucas emphasizes that this movement is primarily motivated by the cost of living, rather than the appeal of the southern lifestyle.
