Yahoo Finance 10 Popular Cities Homebuyers Are Moving Into in 2023
If you're thinking about purchasing real estate in the next few months or so, the current housing market might give you pause. After all, the current rate on a 30-year mortgage is a sky-high 7.36% -- that's a 1.63% increase from this time last year. On top of this, the average sales price of a home in the U.S. was $495,100 in the second quarter of 2023.
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But high interest rates and property values aren't the only concern for homebuyers. Other factors, like taxes, job opportunities, and even climate, can all play a role in determining where you buy property. That's why it's important to consider the bigger picture when making what could be a monumental decision.
If you're considering migrating to a new city in the near future and are worried about where to go, you're in luck. Recently, Redfin compiled data from around 2 million users about the top metros for homeowners to move to in 2023.
Here are the top 10 results, with five of them interestingly located in Florida.
10. Houston
Net inflow (Q2 2023): 3,600
Net inflow (Q2 2022): 4,500
Top origin location: New York, NY
Top out-of-state origin location: New York, NY
The median home sales price in Houston is $335,000, which is much lower than the national average. On top of this, Texas as a whole has an overall cost of living index of 93, making it the 17th most affordable state in the country.
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9. Miami
Net inflow (Q2 2023): 3,700
Net inflow (Q2 2022): 10,500
Top origin location: New York, NY
Top out-of-state origin location: New York, NY
Although the median home sales price in Miami is higher than the national average at $580,000, it's still a highly desirable place to migrate to, especially for people living in New York City. There could be a lot of reasons for this, such as the warmer weather or lack of state individual income tax -- features Nevada also shares.
"To be completely honest, I think Florida draws people for the same reasons we do in Nevada, but I will also say that a lot of the people we've had relocating from Nevada to Florida in the last couple of years have also cited the political climate in Florida being more their style," said Melissa Zimbelman, real estate agent and property manager at LUXE International Realty & Property Management in Nevada.
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8. Dallas
Net inflow (Q2 2023): 4,100
Net inflow (Q2 2022): 6,200
Top origin location: Los Angeles, CA
Top out-of-state origin location: Los Angeles, CA
Like Houston, Dallas benefits from warmer weather and a lower overall cost of living. The median home sales price is higher at $437,000, but it's still a significant difference from the national average. Plus, Texas as a whole doesn't have individual income tax.
7. Cape Coral, Florida
Net inflow (Q2 2023): 4,100
Net inflow (Q2 2022): 6,200
Top origin location: Chicago, IL
Top out-of-state origin location: Chicago, IL
Cape Coral is another popular destination for homebuyers, especially those from Chicago. The median sales price of a home in this city is $405,000, making it less expensive than Dallas. And, like the other Floridian metropolitan areas on this list, it's highly possible that many homebuyers opt for this city due to factors like affordability, weather, taxes and the political climate.
"I think in the last few years, a lot of folks found their 'people' and are going places where they can be surrounded by people that think like they do," said Zimbelman. "I think the political climate has a lot more to do with where people want to live now than ever before. We have seen that mindset mainly in the retirement-age clientele we service."
6. North Port-Sarasota, Florida
Net inflow (Q2 2023): 4,700
Net inflow (Q2 2022): 5,900
Top origin location: New York, NY
Top out-of-state origin location: New York, NY
The North Port-Sarasota metropolitan area falls in the middle of this list in terms of popular cities for buyers to relocate to. The majority of migrants come from New York, where the median sales price is $800,000 -- compared to North Port's median sales price of $375,000.
5. Sacramento, California
Net inflow (Q2 2023): 4,800
Net inflow (Q2 2022): 8,900
Top origin location: San Francisco, CA
Top out-of-state origin location: Chicago, IL
As a whole, California ranks as one of the most expensive states to live in, with an overall cost of living index of 134.5. The median sales price of a home in Sacramento is $495,000, however, which is about the same as the U.S. average.
Despite the higher cost of living, Sacramento is still a popular destination for homebuyers for several reasons. According to Redfin, Sacramento is similar to Las Vegas, Phoenix and some Floridian metropolitan areas in that your money can go further there. This is especially true in comparison to places like San Francisco (where the median home sales price is $1.3 million).
Additionally, Sacramento has seen more economic growth than many other cities in California. In Sacramento County, the total employment is predicted to grow by roughly 4.8% each year.
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4. Orlando, Florida
Net inflow (Q2 2023): 4,900
Net inflow (Q2 2022): 1,200
Top origin location: New York, NY
Top out-of-state origin location: New York, NY
Having experienced a significant influx of migrants, particularly from New York, Orlando is a top destination for many buyers due to its lower housing costs, better weather, lack of individual income taxes and, potentially, its overall political climate.
Plus, the housing market hasn't changed as much in Orlando compared to other major metropolitan areas. Currently, the median home sales price is $375,500 -- only a 0.5% increase from the previous year.
3. Tampa, Florida
Net inflow (Q2 2023): 5,000
Net inflow (Q2 2022): 8,300
Top origin location: New York, NY
Top out-of-state origin location: New York, NY
Making the top three of this list is once again a Florida city -- Tampa. In Tampa, the median home sales price is $430,000. While this is higher than Orlando, it's still notably lower than other metropolitan areas like New York or Miami.
Along with this, Tampa benefits from such things as economic growth and affordable housing opportunities. Recently, Tampa's experienced a 2.3% increase in economic growth and is expected to continue growing at a rapid pace, according to BestPlaces.net.
2. Phoenix
Net inflow (Q2 2023): 5,300
Net inflow (Q2 2022): 7,400
Top origin location: Seattle, WA
Top out-of-state origin location: Seattle, WA
Number two on the list is Phoenix, Arizona. The overall cost-of-living index in Arizona is 107.2, putting the state roughly in the middle of the country in terms of affordability. The median sales price of a home is $437,000, a slight decrease over the past year.
"As a Phoenix Realtor, I have worked with a lot of clients who are relocating from other states. I think a big reason for the inflow in Phoenix has to do with the substantial employment growth in multiple sectors, everywhere from technology to transportation to medical, just to name a few," said Farah Sutton, licensed real estate agent in Phoenix.
"Although prices have increased in the Phoenix area due to an increase in demand, the cost of living is still significantly less in Arizona compared to other states such as California, Washington, and Illinois," added Sutton. "Phoenix is the 5th largest city in the U.S., yet we have a lot of open areas for outdoor activities and recreational amenities. Ultimately, Phoenix offers a great quality of life for a relatively affordable price."
1. Las Vegas
Net inflow (Q2 2023): 5,700
Net inflow (Q2 2022): 6,700
Top origin location: Los Angeles, CA
Top out-of-state origin location: Los Angeles, CA
The median sales price of property in Las Vegas is $415,000, lower than the national average. The overall cost-of-living index is about on par with the rest of the country. However, Las Vegas tops this list for many reasons.
"Las Vegas is already one of the world's top travel destinations; but as of late, it has definitely become more of a final destination for many," said Daniel Del Pozo, Las Vegas native and local real estate agent at Leading Real Estate Companies of the World. "Over the past 40 years, the city has been one of the fastest growing in the country, but more recent aspects of the city's growth have become more prominent beacons attracting more and more people to want to move here."
He continued, "As with most of Nevada, Las Vegas residents benefit from having no state income tax, no recurring natural disasters, and a pretty resilient housing market. Along with the current 'mass exodus' of California because the cost of living has risen so high over the past decade, the job market in Las Vegas has been growing beyond that of just the Strip as we now have giants like Google, Amazon, Switch Communications, and more offering tech avenues for careers in addition to the thousands of casino/resort opportunities. Also, Las Vegas homes over the past 30 years have an average yearly appreciation of 8%-12% in the most popular areas."
Zimbelman corroborated this by noting Las Vegas's lack of state income tax, good corporate tax rates, affordable housing, and great weather.
Note: Cost of living data compiled from the Missouri Economic Research and Information Center
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This article originally appeared on GOBankingRates.com: 10 Popular Cities Homebuyers Are Moving Into in 2023
