The 10 Most Popular Metros for Gen Z Homebuyers

In June, the median sale price for starter homes reached a record high, but most are still receiving multiple offers from eager first-time buyers. Many first-time homebuyers, largely consisting of millennials and Gen Zers, are locked out of homeownership.Jenny Elia Pfeiffer/Getty Images In June, the median sale price for the typical starter home reached an all-time high of $243,000. The income needed to purchase a typical starter home has increased 13% from 2022, to $64,500. Burdened by high costs and limited inventory, many would-be buyers are locked out of homeownership. Buying a home has never been more financially out of reach than it is now.Despite mortgage rates hovering around 7%, US home prices remain high as supply-and-demand imbalances intensify competition among potential buyers. First-time homebuyers, largely consisting of millennials and Gen Zers, are really getting a raw deal. That's because starter homes are disappearing from the market as homeowners with low, locked-in monthly payments refrain from listing their homes for sale, and homebuilders focus on more lucrative projects. It means the few that are making their way to the market are priced way higher than they once were.Coupled with slower wage growth and a cooling labor market, it has become even more difficult for first-time buyers to break into homeownership. "The most affordable homes for sale are no longer affordable to people with lower budgets due to the combination of rising prices and rising rates," Sheharyar Bokhari, a senior economist at Redfin, said in a statement. "That's locking many Americans out of the housing market altogether, preventing them from building equity and ultimately building lasting wealth." Here's the state of starter homes right now.The median sale price of the typical starter home hit a record high of $243,000 in JuneA row of homes in a residential neighborhood.Peter Spiro/Getting ImagesStarter homes commonly refer to smaller, more budget-friendly houses primarily acquired by first-time buyers or individuals with constrained finances.In June, the median sale price for the typical starter home, defined by Redfin as the 5th to 35th percentile of homes by sale price, was $243,000 — up more than 45% from before the pandemic, Redfin reported. The income now needed to afford a $243,000 home is roughly $64,500 per year, an increase of 13% since 2022. To determine the income needed to afford the typical starter home, Redfin used the rule of thumb that a homebuyer taking out a mortgage should spend no more than 30% of their income on their housing payment.The median household income in the US was $70,784 in 2021, according to the most recent Census data.Many starter homes are now considered forever homesA young family in front of a home.Jenny Elia Pfeiffer/Getty ImagesReferred to by real-estate agents as "entry-level" residences, starter homes enable buyers to accumulate equity gradually and subsequently upgrade to a nicer or newer property. What were once considered transitional properties to permanent residences have now become an appealing choice for buyers from all walks of life, largely due to a pervasive shortage of housing across the nation."Before the housing crash of 2008, inventory peaked at about a 13-month supply — twice what we would see in a healthy market," Rick Sharga, founder and CEO of real-estate consulting firm CJ Patrick Company, told Bankrate, a personal finance company. "Today, we have about a three-month supply, which is about half of what we need."In some cities, the cost of starter homes is higher than the national medianA for sale sign.Feverpitched/Getty ImagesThe US housing shortage has been exacerbated by homeowners who, unwilling to give up their locked-in, low mortgage rates, opt to stay put and refrain from selling their homes.This coupled with a pullback in new home construction has left buyers competing for the few homes that remain available for sale. Starter homes are quickly disappearing from the market.According to Redfin, the number of starter homes for sale fell 15% on an annual basis in June, also translating to the biggest decrease since the start of the pandemic. Their absence has made it difficult for many first-time buyers to afford homeownership, especially in Fort Lauderdale, Florida; Newark, New Jersey; and Miami, where the income needed to purchase starter homes increased the most. In these cities, a typical starter home now costs $220,000, $335,000 and $300,000, respectively.The interest for financing a starter home has also increasedA woman looking over bills.Urbazon/Getty ImagesIn addition to dissuading homeowners from moving, elevated mortgage rates are also driving starter homes beyond the grasp of many would-be buyers.According to Freddie Mac, the average US fixed interest rate for a 30-year mortgage rose to 6.96% this week, marking the third consecutive week of increases. During the same period in 2022, the 30-year, fixed-rate mortgage averaged 5.22%. The uptick in rates has added hundreds of dollars to prospective buyers' monthly mortgage payments. It's helped to push housing affordability to an all-time low. "There is no doubt continued high rates will prolong affordability challenges longer than expected, particularly with home prices on the rise again," Sam Khater, the chief economist at Freddie Mac, said in a statement. Predictions of mortgage rate declines in 2023 might offer some incentive for homeowners and buyers to reenter the market, though elevated housing costs are expected to keep many buyers on the sidelines. Prices are dropping in some popular cities as buyer demand fadesAustin, Texas.Evan SemonesBucking a national trend, there are only three US metros where the median cost of a starter home has declined in 2023: San Francisco, Austin, and Phoenix. Though these cities still remain among the least affordable in the country, they've seen a pullback in buyer demand as homebuyer migration slows and the remote-work wave dies down.The cost of a typical starter home in San Francisco decreased 13.3% to $910,000; in Austin, decreased 12.2% to $347,300; and in Phoenix, decreased 9.7% to $325,000. The incomes now needed to afford those homes amount to $241,200, $92,000, and $86,100, respectively."Home prices in these cities rose the fastest in the country when interest rates were low, but when interest rates went up really high and quickly, those prices were not completely sustainable," Bokhari, of Redfin, previously told Insider. "So, they're moving first, in terms of price declines."Hope remains for first-time homebuyersA residential neighborhood in Ohio.Yuanshuai Si/Getty Images.Amid a growing sense of disillusionment among first-time buyers, a glimmer of hope emerges: A handful of small cities across the US still have many affordable homes available to middle-income earners — a segment teeming with prospective first-time homebuyers.Some cities in Ohio, particularly, are a sweet spot, according to data from the National Association of Realtors and realtor.com. An analysis from the companies shows that among the 100 largest US metropolitan areas, three cities in Ohio — Youngstown, Akron, and Toledo — have the most homes affordable to middle-income buyers.In Youngstown, buyers earning at least $75,000 can afford to purchase 72% of listings, while those in Akron and Toledo can afford to buy 61%. In each of these cities, the median home listing price for all kinds of homes, not just starter homes, is more than $300,000 below the national median of $445,000, as of June, according to data from realtor.com. The median home price in Akron is $125,000, in Youngstown it is $119,900, and in Toledo it is $120,000."Youngstown is a weaker market in terms of home values," Ian Beniston, who has been the executive director of the Youngstown Neighborhood Development Corporation for 14 years, previously told Insider. "Since housing is much more affordable here at all times, your money can definitely go further here."Read the original article on Business Insider.....»»

A record one-quarter of house hunters are looking to relocate as high mortgage rates push Americans to cheaper metros, Redfin said. Andy Ryan/Getty Images Redfin reported Wednesday that a record one-quarter of homebuyers are relocating due to lack of affordability.  Phoenix and Las Vegas are two of the most popular cities, despite natural disaster risks.  Arizona's governor recently unveiled a plan to limit homebuilding in Phoenix, citing lack of water. A record share of US homebuyers are looking to relocate to more affordable parts of the country even as natural disaster risks climb, according to a Wednesday Redfin report.More than one-quarter (25.4%) of house hunters are seeking a different metro area, up from 23% a year ago. That figure before the pandemic hovered below 20%. Based on the searches of about 2 million Redfin users who viewed for-sale homes online, relatively cheaper cities like Phoenix, Las Vegas, and Miami are attracting the most interest. That's in spite of those markets coming under worsening risks like heat, drought and flooding, Redfin said."Climate risks haven't yet stopped many homebuyers from moving into areas that don't have enough water, like Phoenix, and places that could eventually be underwater, like coastal Florida," Redfin Chief Economist Daryl Fairweather said."That's because even though Sun Belt home prices soared during the pandemic, those metros remain a bargain for people relocating from expensive coastal cities. Arizona's recent limit on new construction isn't likely to deplete inventory enough – or push prices up enough – to change that calculus much in the short term." Arizona's governor recently unveiled a plan to limit construction in areas around Phoenix after finding that the groundwater can't support the current pace of building. RedfinNear-7% mortgage rates have made already-expensive areas even less affordable. The most common cities people are looking to leave include San Francisco, New York, and Los Angeles, according to Redfin. The typical home in Phoenix, the most popular destination for out-of-town movers, sells for $450,000. The most common source of interest in Phoenix is people who live in Seattle, where homes sell on average for $800,000. To clarify, the growing proportion of homebuyers looking to relocate doesn't mean a higher total number, as unaffordability pushes many individuals out of the market altogether.The total number of homebuyers looking to move to a different city is actually down 7% from a year ago, the sharpest decline on record. But that's less steep than the number of homebuyers looking to move within their current city. That's down 18%, also a record. As a result the share of people looking at new cities is higher.The rise of remote work is also at play, and the pandemic spurred an uptick in homebuyers moving to new metro areas. The freedom to work from anywhere has led many Americans to seek out more affordable locations. Meanwhile, S&P CoreLogic's national home price index climbed in April from the prior month, marking three straight gains.Annually, prices were down 0.2%, yet the monthly pattern suggests prices are stabilizing. "If I were trying to make a case that the decline in home prices that began in June 2022 had definitively ended in January 2023, April's data would bolster my argument," S&P DJI's Craig J. Lazzara said. "Whether we see further support for that view in coming months will depend on how well the market navigates the challenges posed by current mortgage rates and the continuing possibility of economic weakness."Read the original article on Business Insider.....»»

Here's Where Penny-Pinching Gen Zers Are Buying Homes Despite the worst affordability crisis in decades and a national housing shortage, individuals from Generation Z, born between 1997 and 2012, are purchasing homes. A new report reveals which cities these youngsters are attracted to the most.  LendingTree analyzed mortgage purchase requests across 50 major metro areas in 2022. They found Gen Zers are buying the most homes in affordable cities and avoiding expensive ones.  Key findings from the report show Salt Lake City had the largest share of mortgage purchase requests from Gen Zers at 22.59%.  "Though the average mortgage amount in Salt Lake City is higher than in many of the nation's other large metros, it's a hot spot for younger homebuyers, likely owing to — among other factors — its strong jobs market and a good blend of urban and rural amenities," LendingTree analysts said.  Besides Salt Lake City, inexpensive Oklahoma City and Birmingham, Alabama, were next on the list of the most popular cities youngsters were purchasing homes. Indianapolis, Cincinnati, Minneapolis, St. Louis, Nashville, and Kansas City were also popular for Gen Z homebuyers. The least popular areas for Gen Z homebuyers, and not surprisingly, were San Francisco and New York City. Here's the complete list:  These findings suggest Gen Z homebuyers are migrating to affordable metro areas. Migration trends are due to high borrowing costs and a lack of affordable housing.  Tyler Durden Sat, 06/24/2023 - 19:00.....»»

Out of the top metro areas in the US, Salt Lake City has the largest share of mortgage requests from those born after 1997. Gen Z is shaking up the workplace.Klaus Vedfelt/Getty Images Salt Lake City has become the most popular city for Gen Z homebuyers, a LendingTree report found. Oklahoma City and Birmingham, Alabama, are the next two most popular.  Expensive cities like San Francisco, New York, and San Jose, California, were the least popular among Gen Z. Gen Z is becoming old enough to buy houses, and that generation is flocking to more affordable cities and avoiding the expensive coasts. Americans face a housing market characterized by low inventory and high mortgage rates. At the same time, adult Gen Zers have come of age in a remote-friendly professional landscape, altering beliefs about housing and location.This group, born between 1997 and 2012, accounted for an average of 14.91% of potential homebuyers in the 50 largest US metro areas in the 12 months through December 31, 2022, according to a LendingTree report. Salt Lake City had the largest share of mortgage requests from Gen Zers at 22.59%, the analysis found. A strong local jobs market and a blend of urban and rural amenities make it a hot spot. The next two most popular cities included the relatively inexpensive Oklahoma City and Birmingham, Alabama, with mortgage requests hovering at 22.36% and 20.79%, respectively. Indianapolis, Cincinnati, and St. Louis were among other popular choices for Gen Z homebuyers. LendingTreeMeanwhile, San Francisco saw the smallest proportion of mortgage requests by Gen Zers at 7.76%, LendingTree said. The second and third least popular cities, per the report, were New York and San Jose, California, at 8.88% and 9.70%, respectively. Six of the least popular 10 metros for Gen Z buyers are in California. Average down payments among potential Gen Z buyers varied widely based on city. The average in San Jose, for example, was $77,786, whereas a down payment Oklahoma City was $18,752.To be sure, owning a home in the current market may not offer the value it did in years past. CoreLogic data shows that the average US homeowner with a mortgage had less home equity in the first quarter, with the measure slipping 1.9% from a year ago in the first annual decline since 2012.Read the original article on Business Insider.....»»

Home prices are falling the most in pandemic boomtowns that saw unprecedented levels of housing activity during the pandemic. Sarasota, Florida.Suncoast Aerials Realtor.com identified where home prices are falling the most nationwide. Pandemic boomtowns like Austin, Texas; Boise, Idaho; and Phoenix are seeing big discounts. Read on for the top 10 cities and how much home prices have declined in the past year. After a couple of years of unprecedented home price growth, American home buyers could really use a break in the real estate market. The good news is that break is finally here — and it's bringing affordability back toward earth in many metros across the country.In stark contrast to 2020 and 2021, US home sales have slowed dramatically as higher mortgage rates discourage many would-be buyers and homeowners from entering the market at all. This has led to some robust price cuts, especially in previously hot pandemic boomtowns — like Austin, Texas; Boise, Idaho, and Phoenix — where prices surged and homebuilders have been adding inventory. "Those markets that got the most juiced during the pandemic — where the prices really took off — are the markets where they're now suffering the biggest declines" because affordability was hit the hardest there, Mark Zandi, the chief economist at Moody's Analytics, said in a statement. As home prices continue to decline in many parts of the nation, Realtor.com identified where homebuyers can finally see some deals. The company analyzed the median price per square foot in 100 of the largest US metropolitan areas, and considered the change in prices in the year through May. While most cities on Realtor.com's list have long been popular, a few others — like Myrtle Beach, South Carolina; and North Port, Florida — are lesser known but also saw an increase in real estate development throughout the pandemic. "There's actually a lot of building going on in the Myrtle Beach market," Danielle Hale, the chief economist at Realtor.com, told Insider. "That is one reason we're not seeing the same price gains as other markets. We're actually seeing modest declines in the price per square foot."However, just because home prices are falling in a metro doesn't mean it's a bargain. Take Austin, where the median home price has fallen 7.7% since May 2022 but is still $142,751 above the national median of $441,000. When moving to a new city, it's important to consider your personal finances as well as other factors such as employment, education and healthcare. Keep reading to see the 10 US cities where home prices are falling the most, how home prices have fared in each metro since 2022, and their current median home values, according to Realtor.com data.10. ChicagoChicago.KAMIL KRZACZYNSKI/Getty ImagesMedian listing price: $376,000Median listing price per square foot: $205Change in year-over-year price per square foot: -1.1%9. Sacramento, CaliforniaSacramento, California.Provided by jp2pix.com/Getty ImagesMedian listing price: $662,875Median listing price per square foot: $340Change in year-over-year price per square foot: -3.4%8. Winston-Salem, North CarolinaWinston-Salem, North Carolina.halbergman/Getty ImagesMedian listing price: $345,899Median listing price per square foot: $148Change in year-over-year price per square foot: -3.6%7. PittsburghPittsburgh.Sean Pavone/ShutterstockMedian listing price: $238,250Median listing price per square foot: $152Change in year-over-year price per square foot: -3.9%6. Salt Lake CitySalt Lake City.f11photo/Getty ImagesMedian listing price: $635,000Median listing price per square foot: $247Change in year-over-year price per square foot: -4.0%5. Sarasota, FloridaSarasota, Florida.Suncoast AerialsMedian listing price: $549,900Median listing price per square foot: $305Change in year-over-year price per square foot: -4.7%4. PhoenixPhoenix.Kruck20/Getty ImagesMedian listing price: $529,450Median listing price per square foot: $274Change in year-over-year price per square foot: -5.6%3. Myrtle Beach, South CarolinaMyrtle Beach, South Carolina.Getty ImagesMedian listing price: $366,075Median listing price per square foot: $225Change in year-over-year price per square foot: -7.3%2. Austin, TexasAustin, Texas.Peter Tsai/Getty ImagesMedian listing price: $583,751Median listing price per square foot: $276Change in year-over-year price per square foot: -7.7%1. Boise, IdahoBoise, Idaho.Getty Images.Median listing price: $609,875Median listing price per square foot: $282Change in year-over-year price per square foot: -7.8%Read the original article on Business Insider.....»»

Exodus Trend Persists: Homebuyers Unfazed By High Mortgage Rates Leave Expensive Cities A new report from real estate brokerage Redfin indicates that, despite elevated mortgage rates, homebuyers continue to leave expensive metro areas like New York and Seattle for more affordable housing options in cities like Miami and Pheonix.  Miami, Phoenix, Las Vegas, Sacramento, and Tampa were some of the most popular destinations for homebuyers to relocate from pricey cities such as New York, Seattle, Los Angeles, and San Francisco in February.  "Relatively affordable Sun Belt metros perennially top the list of places people are looking to move, due mainly to their comparatively cheap housing and warm weather," Redfin wrote in the report. Even though the homes in the cities with the most inflows last month were considerably more expensive compared with pre-pandemic prices, they remain comparatively affordable.  The typical Miami home sold for $485,000 in February, compared with $640,000 in New York, the most common origin for homebuyers looking to move in. And the typical Phoenix home sold for $425,000, compared with $710,000 Seattle, the most common origin. --Redfin report  For the Federal Reserve, which is trying to cool down the housing market, Phoenix Redfin agent Heather Mahmood-Corley has some troubling news:  "For buyers coming from the Bay Area or another expensive place, homes in Phoenix seem cheap. That's why out-of-towners are still buying homes even though rates are high. "Desirable, well-priced homes are selling quickly, sometimes with a bidding war–largely because there are still so many buyers moving in from out of town." Top 10 Metros Homebuyers Are Moving Into, by Net Inflow Redfin noted homebuyers are leaving San Francisco, New York, and Los Angeles more than any other metro in February, followed by Washington, D.C., and Chicago.  Expensive coastal job centers typically top the list of places people are leaving. That trend became more pronounced in recent years as remote work allowed homebuyers to relocate to more affordable areas. --Redfin report   Top 10 Metros Homebuyers Are Leaving, by Net Outflow While increasing mortgage rates have made home buying the most expensive in a generation, some folks relocating are unconcerned, as they are moving to areas with more affordable housing options. Tyler Durden Fri, 03/31/2023 - 17:20.....»»

Miami topped Redfin's list of metro areas that American wanted to move to. Tampa, Orlando, Cape Coral, and North Port-Sarasota also made the top ten. Alexander Spatari/Getty Images Florida dominates the list of US cities that Americans want to relocate to, according to Redfin. Miami topped the list. Four other Florida cities, including Tampa and Orlando, made the top ten. Phoenix, Las Vegas, Nevada, and Sacramento, California also attracted a lot of interest from Redfin users. Florida dominates the list of US cities that Americans are looking to relocate to, according to a report by Redfin.Miami was the most popular destination for Americans looking at property listings in a different metro area to where they currently lived, the report said. Four other Florida cities – Tampa, Orlando, Cape Coral, and North Port-Sarasota – also made it to the top ten.Overall, between December and February, the top five states homebuyers searched to move to were Florida, Texas, Arizona, Tennessee, and South Carolina, Redfin said. The top five metro areas were Miami, Phoenix, Las Vegas, Sacramento, California, Tampa.Listings in Miami, Tampa, and Orlando attracted more people from New York City than from any other city. Cape Coral and North Port-Sarasota, meanwhile, attracted the most people from Chicago.The report's findings backed trends established during the pandemic, with the rise in remote work driving people to move away from expensive office cities in favor of areas with low taxes, cheap housing, and a sunny climate."Relatively affordable Sun Belt metros perennially top the list of places people are looking to move, due mainly to their comparatively cheap housing and warm weather," Redfin said in its report."While homes in these places cost considerably more than pre-pandemic, they remain comparatively affordable," Redfin said in the report. "The typical home in most of the popular destinations is less expensive than the typical home in the top origins." It noted that, for example, the typical Miami home sold for $485,000 in February and the typical Phoenix home sold for $425,000, compared to $640,000 in New York City.Redfin based its findings on how many more of its users looked at listings between December and February for properties in an urban area than the number of people looking to leave. The data excludes rental listings and only includes people looking to buy homes.The top ten destinations for Americans looking to relocate outside their metro area, according to Redfin, are:Miami, FloridaPhoenix, ArizonaLas Vegas, NevadaSacramento, CaliforniaTampa, FloridaOrlando, FloridaCape Coral, Florida,Dallas, TexasNorth Port-Sarasota, FloridaHouston, TexasSome people, however, are bucking the trend by moving out of the Sunshine State. Factors including low wages, the stifling heat, and dangerous critters are pushing people out of the state. One person previously told Insider that after a while the feeling that you're on vacation "wears off." She moved back to Virginia just five months after relocating to Florida.Climate change is also forcing people out of the state, with violent storms destroying homes in the Keys.Between July 1, 2020 and July 1, 2021, around 220,890 more people moved to Florida from elsewhere in the state, US Census estimates show. Florida – the US' third-most populous state – saw its population grow by 14.6% between 2010 and 2020, according to US Census data. This is double the rate of overall US population growth, and some critics argue that this rate could be unsustainable if the state isn't able to develop the infrastructure to support the huge inflows.Read the original article on Business Insider.....»»

America's most affordable cities aren't popular boomtowns — they're underrated metros that have escaped the pandemic's home buying frenzy. Chattanooga lies along the Moccasin Bend of the Tennessee River and is known for Ruby Falls, a 145-feet tall underground waterfall.Getty Images Housing affordability in the US sank to a 10-year low last November. However, there are certain metro areas where homeownership is much more attainable. Realtor.com has ranked the top places where homebuyers can still get a good deal in 2023. Are higher housing costs holding you back from purchasing a home?That wouldn't be surprising considering that US housing affordability fell to a 10-year low, the National Association of Home Builders announced in November. In cities across the country, especially in pandemic boomtowns like Austin, Phoenix, and Bozeman, where each saw an influx of remote workers and robust population growth in the last couple of years, elevated home prices are truly terrifying potential homebuyers. But despite the record high sale prices and equally steep mortgage rates in 2022, there are still some cities in the United States where the average earner can afford a home.By scraping economic and housing data to predict the growth of home prices and sales in 100 of biggest US metros, Realtor.com ranked the top places where people can still buy an affordable home in 2023. According to their methodology, this year's homebuyers can expect reasonable deals in cities like Hartford, Connecticut and El Paso, Texas, both of which avoided much of the intense buyer competition and rapid home price growth seen in other parts of the country during the pandemic. At a time where the typical home is priced near $400,000, a good indicator of a housing market's health is the balance between home sales and price growth. However, just because a city may be relatively affordable compared to others doesn't mean that it's the perfect fit for everyone. When buying a home it's also important to consider the cost of living, as well as access to jobs, schools, healthcare and food. Read on to see if any of these metro areas meet the mark:10. Toledo, OhioToledo is a large midwestern port city that is renowned for its glass industry.Getty ImagesNovember 2022 median home price: $161,000Forecasted 2023 home sales change: +4.2%Forecasted 2023 home price change: +6.7%Forecasted 2023 combined sales and price change: +10.9%9. Chattanooga, TennesseeChattanooga lies along the Moccasin Bend of the Tennessee River and is known for Ruby Falls, a 145-feet tall underground waterfall.Getty ImagesNovember 2022 median home price: $397,000Forecasted 2023 home sales change: +2.9%Forecasted 2023 home price change: +8.2%Forecasted 2023 combined sales and price change: +11.1%8. Columbia, South CarolinaColumbia, the capital city of South Carolina, is home to the University of South Carolina and the second largest city in the state.Getty ImagesNovember 2022 median home price: $300,000Forecasted 2023 home sales change: +7.7%Forecasted 2023 home price change: +3.6%Forecasted 2023 combined sales and price change: +11.3%7. Grand Rapids-Wyoming, MichiganGrand Rapids, which is well-known for its numerous breweries and quality of beers, sits along the Grand River and is less than an hour away from Lake Michigan.Getty ImagesNovember 2022 median home price: $358,000Forecasted 2023 home sales change: +1.6%Forecasted 2023 home price change: +10.0%Forecasted 2023 combined sales and price change: +11.6%6. Augusta, GeorgiaAugusta, home to golf’s prestigious Masters Tournament, stands on the banks of the Savannah River.Getty ImagesNovember 2022 median home price: $319,000Forecasted 2023 home sales change: +6.2%Forecasted 2023 home price change: +5.7%Forecasted 2023 combined sales and price change: +11.9%5. Buffalo-Cheektowaga, New YorkBuffalo, New York, was once an industrial heavyweight but has been experiencing renewed investment and development in recent years.Getty ImagesNovember 2022 median home price: $240,000Forecasted 2023 home sales change: +6.3%Forecasted 2023 home price change: +6.0%Forecasted 2023 combined sales and price change: +12.3%4. Worcester, MassachusettsDue to its central location in Massachusetts, Worcester is recognized as the ‘Heart of the Commonwealth.’Getty ImagesNovember 2022 median home price: $447,000Forecasted 2023 home sales change: +2.5%Forecasted 2023 home price change: +10.6%Forecasted 2023 combined sales and price change: +13.1%3. Louisville, KentuckyHome to the annual horse racing tournament the Kentucky Derby, Louisville is located along the Ohio River and is one of the Midwest’s largest cities.Getty ImagesNovember 2022 median home price: $290,000Forecasted 2023 home sales change: +5.2%Forecasted 2023 home price change: +8.4%Forecasted 2023 combined sales and price change: +13.6%2. El Paso, TexasEl Paso, Texas is nestled in the Rio Grande Valley on the Mexico-United states border, and home to military base Fort BlissGetty ImagesNovember 2022 median home price: $291,000Forecasted 2023 home sales change: +8.9%Forecasted 2023 home price change: +5.4%Forecasted 2023 combined sales and price change: +14.3%1. Hartford-West Hartford, ConnecticutHartford, which sits on an estuary known as the Long Island Sound, is the capital of Connecticut and among America’s oldest cities.Getty ImagesNovember 2022 median home price: $372,000Forecasted 2023 home sales change: +6.5%Forecasted 2023 home price change: +8.5%Forecasted 2023 combined sales and price change: +15.0%Read the original article on Business Insider.....»»

Highly-paid remote workers drove up house prices during the pandemic. But they're flocking to cities where it's easier to build cheaper homes. Remote workers are flocking to cities where homes are cheaper and easier to build, which is good news for America's housing market.Getty; Marianne Ayala/InsiderIt's easy to blame remote workers for the pandemic's chaotic housing market. Highly paid white-collar employees who exercised their newfound freedom and turned once cheap locales into expensive "Zoomtowns" make for vivid villains.But a new analysis from the Economic Innovation Group, a bipartisan public-policy organization, argues that, eventually, the shift to working from home may turn into the antidote for the price spikes that we've seen. That's because the places where remote workers are flocking — the Sun Belt region in the Southern US and suburban areas outside big coastal cities — are exactly the kinds of locations that are best-equipped to build cheap housing to absorb the flood of newly remote workers."People are able to consider affordability more, while putting less weight on, 'I need to be near the office,'" Adam Ozimek, the chief economist at the Economic Innovation Group and one of the authors of the paper, told me.These areas generally offer cheaper land to build on, less red tape for developers, and a strong record of new housing construction, all of which bodes well for their ability to accommodate thousands of new residents. The population shift to these popular remote-working spots will also help alleviate some of the price pressure in major cities such as New York City and San Francisco, which have struggled for years to build enough housing to ease prices. Once housing supply in the newly popular areas starts to catch up to the demand surge created by the pandemic, rents will come down — and they may even end up lower than pre-pandemic levels, according to EIG's model.But the march to cheaper housing isn't imminent. A lot of multifamily apartments and condos are scheduled to be completed in the next year, but those new units won't be nearly enough to meet the rise in housing demand. Climbing interest rates and recession fears have prompted developers to delay plans for more projects. And while it's clear that the job market has changed forever, the exact future of remote work remains uncertain — some employers are rolling back their "remote-first" policies and ordering workers back to the office.Still, there's reason for optimism. The shift to working from home may have fueled dramatic increases in housing costs earlier in the pandemic, but in the long run, it'll enable more workers to live in areas where housing is plentiful and easier to build — which is good news for America's housing market.Remote work pushed housing trends into warp speedIn some ways, the pandemic's housing shifts were a long time coming. Americans have been migrating from expensive coastal cities like New York and San Francisco and industrial towns in the Midwest to the Mountain West and the Sun Belt for years. But with many white-collar workers suddenly untethered from their office desks in bustling downtowns, the shift from densely populated cities to places where housing was cheaper went into overdrive. In places like Phoenix; Boise, Idaho; and Charlotte, North Carolina, rents and home prices exploded. Jay Parsons, the head of economics for the real-estate-software company RealPage, said he believed most of these relocations would have happened eventually. But the pandemic lit a fire under many people to go ahead and make the move. "These are trends that started well before COVID, but it certainly accelerated that shift," Parsons told me. "We saw just enormous demand from 2020 to 2021 across the suburbs in general, and in the Sun Belt specifically."The shift to remote work also hastened many people's desire for more space. When your bedroom suddenly doubles as a home office, you realize how cramped your apartment is. Across the country, remote workers chose to part ways with roommates or seek out larger homes.The twin desires for a new location and more space combined to drastically increase the demand for housing. Instead of a slow drip of people looking for new apartments or moving to the burbs, a cascade of movers hit the market all at once. But because of disruptions to construction and the naturally slow pace of building, homebuilders and developers struggled to keep up. "This was a fairly unique event in real-estate history, to see the fundamental shape of demand for housing change for millions of people in the span of just a few months," Jeff Tucker, a senior economist at Zillow, told me.Between 2020 and 2022, rents rose 8% and home prices rose by more than 20% nationally, adjusted for inflation. In Phoenix, rents surged 26% in the same period, according to inflation-adjusted data from Zillow. In Las Vegas, rents jumped 23%. Charlotte residents saw rents climb 13%. A paper published this year by the Federal Reserve Bank of San Francisco estimated that the widespread adoption of remote work explained more than half of that national home-price increase since 2019 and a similar share of the change in rents.There's reason for optimismAs things start to normalize, however, supply is on the rise. A first wave of new supply is coming in 2023, when apartment deliveries are projected to spike after two years of elevated construction levels. More than 917,000 units are under construction across the US, RealPage Market Analytics found. That's the second-largest volume the nation has ever seen and will increase the nation's apartment base by 4.9%.Most experts say the coming increase in the number of homes, condos, and apartments available means better days are ahead for renters. "This spike in prices in the short term should be followed by moving toward a new equilibrium, which does mean a bit of a cooldown in housing costs," Tucker told me. A decline in housing costs will be accelerated by the same thing that caused prices to explode earlier in the pandemic: people moving to cheaper places. The Sun Belt, with its promise of warmer weather, more space, and cheaper homes, also happens to be a wonderland for developers. In the region, developers enjoy lower costs for land, smaller regulatory fees, and faster approval processes for new developments, all of which make it easier to add housing there than in other parts of the country, Parsons said. These less-expensive markets "tend to be places where they build more," Ozimek of the Economic Innovation Group said — after all, that's why they've managed to remain cheaper in the first place.Residents of remote-working hot spots might ask, "Won't all of these remote workers just bring New York or San Francisco prices to my city?" But "superstar" cities like San Francisco, Seattle, New York, and Los Angeles have grown increasingly unaffordable because their housing supply is fairly inelastic. Land in these locations is harder to come by and more expensive, while restrictive zoning laws limit the number of housing units that developers can build on a single parcel. The Sun Belt and more-rural locations, by comparison, "should do a pretty good job of meeting that demand," Tucker said, because they have fewer of these hurdles. "The types of places that this pandemic and remote work happened to push people are exactly the types of places in America where supply is pretty elastic," Tucker told me.Take, for example, Houston and Dallas, a pair of Texas metros that have been able to remain "impressively affordable for being in-demand places," Tucker said. In Houston, changes to zoning laws have dramatically reduced minimum lot sizes across the city, allowing developers to build more houses on the same amount of land. Dallas, meanwhile, had the highest permitted number of future housing units of any metro in the country at the beginning of 2022, with Houston coming in a close second, according to data compiled by the National Association of Home Builders. In the long run, these shifts should help cool off rents and home prices and, in some cases, could bring prices down below where they were before all the chaos started. According to EIG's model, the wave of new supply coming online should bring inflation-adjusted rents down by 3.7% in the long run. People are also moving to places that tend to build more housing and away from places that don't, which will likely lower rents in an average housing market by another 0.5%. Additionally, because more people will be living in cheaper locations, the average American's housing costs will likely be 1.7% cheaper.The timing of this pressure release is fuzzy, since the EIG researchers don't know when there will be enough new supply. And these are national averages, so individual markets could see even bigger changes. There are also reasons to think that the estimates are conservative, Ozimek added — if it turns out that most of the change in housing demand was due to low interest rates, rather than remote work, or if even more employees start working remotely, the drops in rent may be even bigger.On the other hand, there's a lot we still don't knowNone of those positive effects will come to fruition if we don't build more housing. But now developers are pulling back because of higher interest rates and recession fears. That could delay some of the affordability gains from pandemic-era migration. "We need to get through this high inflationary period that the Fed is trying to tamp down," Ozimek said. "Then I think we'll see more normalized conditions in the housing market and some sort of gradual adjustment of supply to demand."There are other factors to consider, including the ultimate fate of our remote-work shift. Between 2019 and 2021, the number of people primarily working from home tripled to 27.6 million people, or about 18% of the labor market, according to the US Census Bureau. In a survey conducted by the consulting firm McKinsey in spring, more than one-third of US employees said they had the option to work remotely five days a week. But we don't yet know to what extent employees will continue to work from home in the long term, or how much that will play into relocation decisions. We're already seeing more executives push employees back to the office. Snap recently ordered employees to work in the office at least four days a week starting in February. Elon Musk asserted his authority at Twitter by putting an end to remote work.A weakening economy might make CEOs feel like they have more license to dictate employees' working arrangements. On the other hand, as my colleague Aki Ito previously argued, a recession could further ingrain remote work as employers look to cut spending on real estate. In the future, a labor market in which there is an abundance of fully remote jobs could embolden more workers to move to cheaper areas where housing supply can better meet demand. Only time will tell. Despite the turmoil of the past 2 ½ years, there are ample reasons to believe that brighter days lie ahead for renters and homebuyers. The country's housing shortage is massive — as many as 3.8 million units, by some estimates — and we still have to sort through all the effects that the pandemic had on demand for homes. But we shouldn't overlook the positives that could come from reshuffling the country's labor force.James Rodriguez is a senior reporter for Insider.Read the original article on Business Insider.....»»

Those on the older end of Generation Z—those born between 1997 and 2012—are now of age to attend college, start their careers and buy their first homes. But where they looking to buy? A new study by LendingTree aims to answer that question through analysis of mortgage offers given last year to adult Gen Z users… The post The Most Popular Cities for Gen Z Homebuyers appeared first on RISMedia. Those on the older end of Generation Z—those born between 1997 and 2012—are now of age to attend college, start their careers and buy their first homes. But where they looking to buy? A new study by LendingTree aims to answer that question through analysis of mortgage offers given last year to adult Gen Z users of its platform across the nation’s 50 largest metros. Its new report shows adult Gen Zers account for an average of 10% of homebuyers. Here’s what else the study found. Some key findings: Salt Lake City, Utah retains its number one spot from last year’s rankings as the most popular metro for Gen Zers. 16.60% of mortgage offers there go to Gen Zers. Louisville, Kentucky, and Oklahoma City, Oklahoma are the next most popular metros among Gen Z buyers. As was the case in last year’s ranking, San Francisco, California is the least popular among Gen Z buyers, with only 3.64% of mortgage offers going to members of that generation. There’s a $35,155 difference between the average down payment among Gen Z homebuyers in Los Angeles, California and New Orleans, Louisiana, where they’re the highest and the lowest, respectively, across the 50 largest metros. The takeaway: “While Gen Zers don’t make up a huge portion of homebuyers in the nation’s largest metros, their numbers are growing,” said Jacob Channel, senior economic analyst and report author. “And, like millennials before them, they’re poised to become one of the biggest forces in the housing market over the next few decades. Though Gen Zers old enough to buy a house in the near future will likely face headwinds including high home prices and rising mortgage rates, our study illustrates that becoming a homeowner is still possible for many members of the generation.” To view the full report and city rankings, click here. The post The Most Popular Cities for Gen Z Homebuyers appeared first on RISMedia......»»

COVID-19 has shaken the norms of homeownership and market expectations across the United States throughout the pandemic. As many industries transitioned to remote work, more homebuyers find themselves free to move anywhere they’d like while keeping their jobs, which is especially convenient for those seeking homes in more affordable real estate markets. As a result, […] The post Top 10 Real Estate Markets on the Rise appeared first on RISMedia. COVID-19 has shaken the norms of homeownership and market expectations across the United States throughout the pandemic. As many industries transitioned to remote work, more homebuyers find themselves free to move anywhere they’d like while keeping their jobs, which is especially convenient for those seeking homes in more affordable real estate markets. As a result, this trend has led to plenty of homebuyers moving to communities with cheaper listings and more space. But much to our surprise, per Realtor.com’s latest emerging markets report, pricey housing markets are making a comeback. Less likely markets during these trying times are now becoming economic hotbeds—also known as emerging markets—which results naturally from an influx of homebuyers into these communities and their increasing populations. The quarterly Wall Street Journal/Realtor.com® Emerging Housing Markets Index reported the current top 10 emerging markets in the United States: City Median List Price Naples, FL $667,000 North Port, FL $445,000 Kahului, HI $937,000 San Luis Obispo, CA $899,000 San Jose, CA $1,224,000 Cape Coral, FL $380,000 Fort Wayne, IN $215,000 Huntsville, AL $362,000 Raleigh, NC $387,000 Burlington, NC $285,000 Even though none of the U.S.’s biggest cities made it onto the list, it’s worth noting that the average population of the top emerging markets hit 500,000 residents this quarter—100,000 more than the previous. Real estate is plenty active during this time of year given seasonal changes and those looking for homes in regions with less harsh winters, which is why coastal real estate markets, especially in Florida, are seeing tons of action alongside less expensive communities in the South and Midwest. Danielle Hale, Realtor.com chief economist, states, “Some of what we’re seeing is a bit of a seasonal shift. These real estate markets tend to be more active this time of year.” Naples, North Port, and Cape Coral all made the top emerging markets list, proving Florida’s popularity with homebuyers, especially now. According to Brad O’Connor, chief economist at Florida Realtors, “Florida has always been popular with buyers, but it increased considerably during the pandemic.” “The ability to work remotely really opened the door for many people to come to Florida,” says O’Connor. “Beach towns big enough to have the amenities people would like, and you can get a nice-sized home. And they’re more affordable than some of the places people are coming from, like New York. For the untethered worker, it’s a nice place to be.” What is an emerging market? Although cities with emerging markets tend to have a high cost of living, their economies are strong, wages high, and unemployment rates low. With homebuyers free to move to different cities as the rate of remote work increases, these markets tend to see more than two-thirds of homebuyers coming from other major metropolitan areas. That’s why top emerging markets are showing a population growth of 1%; meanwhile, 300 of the largest markets are only seeing growth of about 0.4%. These emerging markets also see faster home sales than most major metros, with home listings typically lasting only 40 days before being sold—a full 13 days faster than you’d see on average in most major markets. Lastly, emerging markets tend to see a higher percentage of foreign populations, increasing international market interests as they attract those with similar backgrounds and heritages to the same market. These top markets saw 2.2% of their home listing viewership from foreign buyers, whereas the 300 largest markets only saw 1.2%. McKissock Learning is the nation’s premier online real estate school, providing continuing education courses and professional development to hundreds of thousands of real estate agents across the country. As part of the Colibri Real Estate family of premier education brands, McKissock Learning, along with its sister schools Real Estate Express, Superior School of Real Estate, Allied Schools, The Institute for Luxury Home Marketing, Gold Coast Schools, The Rockwell Institute and Hondros Education Group, helps real estate professionals achieve sustainable success throughout each stage of their real estate career. Learn more at mckissock.com/real-estate. The post Top 10 Real Estate Markets on the Rise appeared first on RISMedia......»»

Nationwide, 30.3 percent of Redfin.com users looked to move to a different metro area in October and November, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s down from a record-high 31.5% in the first quarter of 2021 but well above pre-pandemic levels. Homebuyer interest... The post Florida remains top destination in great COVID migration appeared first on Real Estate Weekly. Nationwide, 30.3 percent of Redfin.com users looked to move to a different metro area in October and November, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s down from a record-high 31.5% in the first quarter of 2021 but well above pre-pandemic levels. Homebuyer interest in relocating to a different part of the country accelerated as the coronavirus pandemic took hold in the first half of 2020 and reached its peak at the beginning of this year before declining slightly and leveling out. Redfin.com users are showing significantly more interest in relocating than before the pandemic, when levels stood at 25% to 26%. “At the beginning of the pandemic, remote work gave homebuyers the opportunity to consider a new location,” said Redfin Chief Economist Daryl Fairweather. “Now the labor market is incredibly tight, which means even homebuyers with in-person occupations can move somewhere new and be confident they can secure employment in their new town.” Miami was the most popular migration destination of any major U.S. metro for the fourth month in a row. Next come Phoenix, Las Vegas, Sacramento and Tampa. Two other Florida metros also appear on the top 10, with Cape Coral taking the number seven spot and North Port coming in 10th. The popularity of migration destinations is determined by net inflow, a measure of how many more Redfin.com home searchers looked to move into a metro than leave. Florida has become a particularly popular destination this year as remote workers and retirees flock to the state in search of beaches, warm weather, low taxes and more affordable housing than big cities on the East or West Coast. Net inflow into Miami has nearly tripled since this time last year, and net inflow into Tampa has nearly doubled, with New York as the number-one origin for Redfin.com users moving to both areas. “More than half of my active clients are either investors or people who are relocating, coming from places like California, Oregon, New York and New Jersey,” said Miami Redfin agent Cristina Llanos. “The relocators tend to be young remote workers who are moving to Miami for the affordability and sunshine. One client said they’re coming to Miami because they hate the snow; another wants to raise their kids in an ethnically diverse city.” San Francisco, Los Angeles, New York, Washington, D.C. and Seattle top the list of places Redfin.com users looked to leave in October and November. That’s according to net outflow, a measure of how many more Redfin.com home searchers looked to leave a metro than move in. Big, expensive coastal cities typically top the list of places Redfin.com users are looking to leave, a trend that has accelerated with the pandemic and remote-work options. Many big-city dwellers with white-collar jobs are able to work remotely from more affordable locations with a lot of recreational opportunities. The post Florida remains top destination in great COVID migration appeared first on Real Estate Weekly......»»

From remote work trends impacting where people can live to affordability issues cropping up as home prices rise, the real estate markets in 2022 will have a fair share of new challenges and opportunities. According to the realtor.com® 2022 Housing Forecast, next year is set to be a mixed bag. Housing trends to watch in […] The post Forecast: 2022 Real Estate Market Will be a Mixed Bag appeared first on RISMedia. From remote work trends impacting where people can live to affordability issues cropping up as home prices rise, the real estate markets in 2022 will have a fair share of new challenges and opportunities. According to the realtor.com® 2022 Housing Forecast, next year is set to be a mixed bag. Housing trends to watch in 2022: While 2020-2021 brough a home-buying frenzy largely fueled by first-time millennial homebuyers, potential homeowners will face increased competition for at least the next three years. Affordability will be a mixed bag as mortgage rates continue to climb and home prices rise. Realtor.com® expects income to grow 3.3% by year end and unemployment to continue declining from a projected 4.8% in the last three months of 2021 to 3.5% during the same time period in 2022. Workplace flexibility and higher incomes may give employees the advantage in 2022 with one-in-five prospective sellers (19%) looking to move because they no longer need to live near the office—an increase from 6% in the spring. The suburbs will become increasingly popular compared to big urban metros as home shoppers search for more space—a trend brought on by the pandemic. However, as demand is expected to outpace new construction growth, buyers may have to sacrifice space due to affordably constraints. Hispanic homeownership is predicted to rise in 2022, driving housing demand and impacting the homeownership rate for years to come. The takeaway: “Whether the pandemic delayed plans or created new opportunities to make a move, Americans are poised for a whirlwind year of home-buying in 2022. With more sellers expected to enter the market as buyer competition remains fierce, we anticipate strong home sales growth at a more sustainable pace than in 2021,” said realtor.com® Chief Economist Danielle Hale in a statement. “Affordability will increasingly be a challenge as interest rates and prices rise, but remote work may expand search areas and enable younger buyers to find their first homes sooner than they might have otherwise. And with more than 45 million millennials within the prime first-time buying ages of 26-35 heading into 2022, we expect the market to remain competitive.” “Our Housing Forecast suggests that we’re in store for another dynamic year of activity, but 2022 will also come with growing pains as we navigate the path forward from the height of the pandemic toward a new normal,” said George Ratiu, manager of Economic Research for realtor.com®, in a statement. “With most real estate markets expected to be competitive in 2022, it’s important to remember that you’re in the driver’s seat of your real estate journey. The bottom line for buyers is to make sure you’re comfortable with your timeline and budget—and especially for younger buyers making this massive financial decision for the first time. For sellers, take into account your local market conditions as well as the likely increase in the number of homes for sale, and price yours competitively.” Liz Dominguez is RISMedia’s senior online editor. Email her your real estate news ideas to lizd@rismedia.com. The post Forecast: 2022 Real Estate Market Will be a Mixed Bag appeared first on RISMedia......»»

A new report from Berkshire Hathaway HomeServices is shedding some light on what the post-pandemic luxury real estate market might look like as the travel restrictions and financial upheavals of the pandemic begin to settle and wealthy homebuyers begin assessing their preferences and needs in a changing world. Of particular interest is a continued demand […] The post Post-Pandemic Luxury Trends Beginning to Emerge appeared first on RISMedia. A new report from Berkshire Hathaway HomeServices is shedding some light on what the post-pandemic luxury real estate market might look like as the travel restrictions and financial upheavals of the pandemic begin to settle and wealthy homebuyers begin assessing their preferences and needs in a changing world. Of particular interest is a continued demand for vacation homes—where people are likely to spend significantly more time than they did previously—as well as a likely renewed interest in large metros like New York City and Dubai. The report also examined geographic and demographic trends, honing in on what it referred to as the “millennial migration” of younger homebuyers flooding into non-traditional markets—places like Aspen, Colorado and Santa Barbara, California—driven by a desire for more space and flexible remote work schedules. “What is interesting to me is that millennials are largely skipping the entry level home purchase and moving directly to a move-up home, or in many cases an aspirational home,” Christy Budnick, CEO of HSF Affiliates, LLC, tells RISMedia. “Since many millennials are purchasing their first home in their mid to late 30s, we are seeing an unusual percentage purchasing in the million dollars-plus range.” Millennials also prefer less flashy, less opulent designs for their luxury homes, the report said, and value technology and smart-home amenities much more than previous generations. Following the broader market, luxury buyers have also flocked to lesser-known cities in the Midwest especially, driving up prices and leaving scarce inventory. Empty lots or tear-down homes in Coeur d’Alene are going for around $700,000, while prime locations along one of the area’s beautiful lakes are easily surpassing $2 million, according to the report. The median price for a luxury sector home in Austin blew past $2.75 million, the report said, and has seen a 66% increase in total sales in that sector. Other hot cities in non-traditional luxury markets the report identified include Crested Butte, Colorado; Bozeman, Montana, and Jackson Hole, Wyoming. “With the ability for many to work from home or a mix of in-office/at-home work, homebuyers will continue to prioritize lifestyle and the ability to spend more time enjoying life in their second or vacation homes,” Budnick says . Florida is another destination for younger luxury buyers, according to the report, as people flee high taxes in Atlantic states. The overall median home price in Miami rose almost 30%, and the threshold to be considered a luxury property nearly doubled from around $1 million to more than $2 million. Florida is also the epicenter of the “half-and-half” trend, where homeowners are looking for an equal amount of two good things as they split time between two places, according to the report. Sparked by a pandemic restlessness that saw frustrated, unfulfilled city-dwellers seeking gratification when their traditional at-home indulgences were restricted, these people are likely to continue slipping in and out of new homes—which are designed to comply with their every need—year-round. “Because of the pandemic, buyers are no longer using their vacation homes just for vacation. Instead, they are spending much more time working remotely and splitting their time between primary and secondary homes,” Budnick says. Privacy and flexibility characterize this new practice, which is also popular along the Jersey Shore and California coastline. Having two spaces where they will spend roughly equal amounts of time—with both used almost interchangeably for pleasure as well as work—is the definition of the “half-and-half.” Vaccinations and a loosening of previously tight restrictions have done nothing to quell people’s enjoyment, or desire to at least try out this new experience, according to the report. International vacation homes are another trend on the uptick in a post-pandemic world, as luxury buyers cast their eyes overseas as they look to snatch up more space for leisure. Those buyers have piled into more rural areas, again with an emphasis on space and privacy, though also an eye on how governments handled the pandemic. The report cited Dubai and Canada as two destinations that have seen an increased interest at least partially due to their success at staying open and safe during the pandemic, according to the report. Canada in particular was rated highly for its “risk readiness” and “health management,” and buyers were also drawn to country-cottage style properties that can provide flexibility with home offices or so-called “granny suites.” “Many luxury buyers did seek to attain a new nationality during the early days of the pandemic, particularly those in hard hit areas as well as those looking for more space, but also excellent health care,” Budnick says. “This is one of the reasons that Canada has fared so well, offering homes with wide open space outside of the city but access to an outstanding health care system in the event it is needed.” A handful of swanky Toronto suburbs saw median home prices soar more than 50% year-over-year, according to the report, and Dubai’s most expensive properties spiked 230% in the first quarter of 2021. Jesse Williams is RISMedia’s associate online editor. Email him your real estate news ideas to jwilliams@rismedia.com. The post Post-Pandemic Luxury Trends Beginning to Emerge appeared first on RISMedia......»»

While a recent report pegged Charlotte among the nation's hottest housing markets for the new year, it seems the city is not among the top picks for a coveted demographic. That's according to a recent report from locally based LendingTree Inc. (NA.....»»

Say good-bye to big city life. The most popular areas for homebuyers are in smaller metros, according to Realtor.com’s list of the hottest ZIP codes......»»

Say good-bye to big city life. The most popular areas for homebuyers are in smaller metros, according to Realtor.com’s list of the h.....»»

Gen Zers are buying homes in certain cities and states. These 21 metros have affordable home prices and many are located in the Midwest. A young woman in Provo, Utah.Tetra Images - Jessica Peterson/Getty Images Gen Z accounts for 18% of homebuyers from April to July this year, Zillow said.  In 21 metros, Gen Zers make up at least 20% of homebuyers. Many are in the Midwest.  These places are "punching a little bit above their weight" with first-time homebuyers, Zillow said. High home prices, low inventory, and rising mortgage rates are plaguing the housing market right now. But that hasn't deterred Gen Z from buying homes. Around 18% of successful homebuyers in the US this year were a part of the youngest cohort of adults, according to Zillow's annual Consumer Housing Trend Report, which surveyed 11,800 people and defines Gen Z as those between the ages of 18 to 28.Hotspots for these young homeseekers are no longer coastal metropolises. Instead they are spots concentrated in the Midwest, upstate New York, or the South — where Gen Z made up at least 20% of buyers between April and July, Zillow found. Popular regions for Gen Z like the rust-belt and the Midwest are "punching a little bit above their weight," with first-time homebuyers, who tend to be younger, Manny Garcia, Zillow's senior population scientist, told Insider. Aidan Dobbins, a Gen Zer who bought his Baltimore home at 23, told Insider last year that homeownership is a priority for his generation because they have "internalized," the fears of financial insecurity that millennials faced as they came of age during the Great Recession.It has "almost morphed into motivation to be able to get your piece of the pie as soon as you can so that you can be secure for the rest of your life," he said. Here are the places that have the highest share of Gen Z homebuyers. Home prices for each metro are from Zillow, and average yearly income is based on the average hourly wage for the metro in May 2022, according to the Bureau of Labor Statistics. 21. Oklahoma City, OklahomaOklahoma City, Oklahoma.Visions of America/Universal Images Group via Getty ImagesPercent of homebuyers that are Gen Z: 20% Average home price: $198,125Average income for a full-time worker: $53,87020. Buffalo-Cheektowaga-Niagara Falls, New YorkSkyline of Buffalo, New York.Getty ImagesPercent of homebuyers that are Gen Z:  20% Average home price: $252,418Average income for a full-time worker: $53,29019. Spokane-Spokane Valley, WashingtonSpokane, Washington.Kai Eiselein/Getty ImagesPercent of homebuyers that are Gen Z: 20% Average home price: $409,559Average home price: $54,94918. Rochester, New YorkRochester, New York.ShutterstockPercent of homebuyers that are Gen Z: 21%Average home price: $212,810Average income for a full-time worker: $54,53817. Knoxville, TennesseeKnoxville, Tennessee.Paul Hamilton / EyeEm/Percent of homebuyers that are Gen Z: 21%Average home price: $338,302Average income for a full-time worker: $50,72016. Louisville/Jefferson County, Kentucky-IndianaLouisville, Kentucky.Adam Jones/Getty ImagesPercent of homebuyers that are Gen Z: 21% Average home price: $249,246Average income for a full-time worker: $53,82015. Harrisburg-Carlisle, PennsylvaniaHarrisburg, Pennsylvania.Shutterstock/Jon BilousPercent of homebuyers that are Gen Z: 21% Average home price: $274,342Average income for a full-time worker: $56,92214. Colorado Springs, ColoradoColorado Springs, Colorado.Kit Leong/ShutterstockPercent of homebuyers that are Gen Z: 22% Average home price: $447,343Average income for a full-time worker: $54,65613. Cleveland-Elyria, OhioCleveland, Ohio.Yuanshuai Si/Getty ImagesPercent of homebuyers that are Gen Z: 22%Average home price: $218,489Average income for a full-time worker: $57,24012. Birmingham-Hoover, AlabamaBirmingham, Alabama.SeanPavonePhoto/Getty ImagesPercent of homebuyers that are Gen Z: 23% Average home price: $252,414Average income for a full-time worker: $54,03811. Syracuse, New YorkSyracuse, New York.iStock/Getty Images PlusPercent of homebuyers that are Gen Z: 23% Average home price: $175,622Average income for a full-time worker: $60,80010. Lansing-East Lansing, MichiganLansing, Michigan.Henryk Sadura/Getty ImagesPercent of homebuyers that are Gen Z: 23% Average home price: $219,967Average income for a full-time worker: $58,6779. Toledo, OhioToledo, Ohio.Sean Pavone/Getty ImagesPercent of homebuyers that are Gen Z: 23% Average home price: $113,873Average income for a full-time worker: $58,0808. Indianapolis-Carmel-Anderson, IndianaIndianapolis, Indiana.Shutterstock/Alexey StiopPercent of homebuyers that are Gen Z: 23% Average home price: $272,583Average income for a full-time worker: $55,5207. Detroit-Warren-Dearborn, MichiganDetroit, Michigan.Mike Kline/Getty ImagesPercent of homebuyers that are Gen Z: 24%Average home price: $243,918Average income for a full-time worker: $62,0056. Dayton, OhioDayton, Ohio.Nicholas Smith/Getty ImagesPercent of homebuyers that are Gen Z: 24%Average home price: $110,193Average income for a full-time worker: $57,2425. Cincinnati, Ohio-Kentucky-IndianaCincinnati, Ohio.Adam Jones/Getty ImagesPercent of homebuyers that are Gen Z: 25% Average home price: $238,714Average income for a full-time worker: $56,4604. Albany-Schenectady-Troy, New YorkAlbany, New York.Dennis Macdonald/Getty ImagesPercent of homebuyers that are Gen Z: 25%Average home price: $315,959Average income for a full-time worker: $64,6883. Grand Rapids, MichiganGrand Rapids, Michigan.Henryk Sadura/ShutterstockPercent of homebuyers that are Gen Z: 25%Average home price: $311,514Average income for a full-time workers: $54,9122. Provo-Orem, UtahProvo, Utah.Johnny Adolphson / ShutterstockPercent of homebuyers that are Gen Z: 27%Average home price: $523,783Average income for a full-time worker: $50,1001. Ogden-Cleafield, UtahOgden, Utah.mandicoleman.com/Getty ImagesPercent of homebuyers that are Gen Z: 31% Average home price: $482,908Average income for a full-time worker: $48,480Read the original article on Business Insider.....»»

They're elder millennials who live in the South, have a household income over $100,000, and plan to put down less than 20% of a home's purchase price. A family speaking with a real-estate agent.Anchiy/Getty Images Zillow released its 2023 Housing Trends Report, which digs into the state of homebuyers in the US. If found the typical American interested in buying a home is an elder millennial in the South. The South is popular because "folks are chasing affordability," a Zillow population scientist said. Housing affordability is at an all-time low, but that's not deterring people from wanting to buy homes. But what makes up the typical prospective homebuyer? According to Zillow, they're elder millennials who live in the South and have a household income of $100,000 or more, yet don't plan to put 20% down on a home purchase. Oh, and they're making decisions on where to live based on climate concerns.The real-estate site defines prospective homebuyers as "household decision makers" that plan to purchase a home in the next year, while successful homebuyers are those who already purchased a home, according to its annual Consumer Housing Trends Report.Manny Garcia, a senior population scientist at Zillow, said that this survey was the first where trends between prospective and successful buyers began diverging. "Frankly something that stood out to me was that lag, that prospective buyers are increasingly not caught up to the reality of what it takes to buying a home," he told Insider.Read on to meet the typical prospective homebuyer in America, according to Zillow.The typical prospective homebuyer is 39, older than the typical successful buyerThe typical prospective homebuyer is 39, according to Zillow.Suriti/Getty ImagesThe typical prospective homebuyer is an elder millennial, with a median age of 39. Their successful homebuyer counterparts are a bit younger, at 35. According to data from Zillow, approximately 62% of prospective homebuyers were born before 1980, approximately 10% are 60 or older, and 22% are in their 20s or younger.The contrast between these demographics underscores differing attitudes towards homeownership — mostly driven by affordability. An April study from Zillow shows that more than half of Gen Zers and millennials believe they'd need to win the lottery in order to afford a home purchase. "Combine rising rates with record-breaking home value appreciation and it's easy to understand why younger generations are wondering how they'll ever be able to afford a home," Amanda Pendleton, Zillow's home trends expert, said in the report. The median prospective buyer reports a household income between $100,000 and $124,999A successful buyer’s annual median household income is approximately $96,590, according to Zillow.Miniseries/Getty ImagesIt's getting even more costly to pursue homeownership. As of August, the US median home price is $349,770, up 0.4% from the same time period in 2022. And as of last week, the average rate for a 30-year fixed mortgage is 7.18%, up from 6.02% during the same week in 2022, according to Freddie Mac.Confronted by escalated home prices and heightened mortgage rates, this year's potential homebuyers will need even deeper pockets to afford homeownership, particularly in light of the ongoing surge in inflation.So it comes as no surprise that in 2023, those who plan or manage to buy a home have higher incomes than the general population.According to Zillow, the median prospective buyer reports a household income between $100,000 and $124,999. A successful buyer's annual median household income is approximately $96,590. The figures are significantly above the overall national median household income of $74,580, as of 2022.More than half of prospective mortgage buyers intend to put down less than 20%In 2023, many prospective buyers are putting down less than 20%.Paul Bradbury/Getty ImagesDespite having higher incomes than the general population, prospective homebuyers are still struggling to afford their down payments. It all comes down to their savings. Researchers at Zillow found that among those who intend to finance their home purchase with a mortgage, 52% reported pausing or delaying the origination process at least once to save up enough money for a down payment. But even after saving up for a down payment, prospective buyers are putting down less than 20%, typically the recommended amount for a home purchase. "We found that mortgage buyers who had some type of student loan debt were less likely to put down at least 20% on their home," Garcia told Insider. According to Zillow, while the majority of successful mortgage buyers reported putting down at least 20% this year, 56% of prospective buyers reported that they intend to put down less than 20% —  with the median share of these buyers planning to put down as little as 10% to 19% of the final purchase price. The largest share of prospective buyers live in the SouthStates in the South like Texas have become popular home buying destinations.fstop123/Getty ImagesSeveral states in the South — like Texas, Georgia, and Alabama — have appeared on numerous lists that highlight the best and most affordable US housing markets. That's why it's not shocking that the region has the highest share of prospective buyers, according to Zillow. The brokerage's data shows that 34% of prospective buyers live in the South, followed by 29% in the West, and 19% and 18% in the Midwest and Northeast, respectively.The distribution suggests that southern prospective buyers are more likely to succeed in home buying than their peers in the Northeast and West, Zillow researchers wrote.   "For the most part, folks are chasing affordability," Garcia said, adding that states like Texas also have a lot more housing inventory, which has kept home prices down.The median home price in Texas, a popular destination for home buyers, was $302,281 in August, nearly $48,000 below the national median price of $349,770.  Climate is impacting where prospective buyers are wanting to buy homesA home submerged in flood water.jhorrocks/Getty ImagesIn an increasingly perilous world where the consequences of the climate crisis are becoming more serious, many prospective buyers are factoring this into their home purchasing decisions.Zillow's report indicates that 83% of prospective buyers say that at least one climate risk has determined where they shop for a home. Of all risks, flooding is a top concern at 41%, followed by wildfires and extreme temperatures, both at 37%.In housing markets like Florida, these risks are also pushing long-term residents out. Since 2000, the state has experienced five federally declared natural disasters in the form of strong hurricanes and tropical storms.It has not only brought about severe housing damage, but it has also cost the state, homeowners, insurance companies, and taxpayers billions of dollars. Read the original article on Business Insider.....»»

Forget The Second Home At The Lake, US Vacation Home Buyers Are Going To Mexico Authored by Mark Gilman via The Epoch Times (emphasis ours), With the average 30-year fixed mortgage interest rate now over 7 percent and a shockingly low inventory of homes available, Americans are looking for second or vacation residences out of the country more than ever. According to a report from Coldwell Banker, 92 percent of high-net-worth Americans actively looked at real estate overseas last year and two-thirds (67 percent) of those surveyed said they already own residential property outside the United States, according to Mansion Global. So, what country is experiencing the highest rate of American home buyers? Mexico. Atomosphere of the Carbon38 and Hamptons Magazine Opening Celebration of the Beach House in Bridgehampton, New York, on July 30, 2016. (Mark Sagliocco/Getty Images for Hamptons Magazine) “Buying a home is not as cheap in Mexico as it once was, but you get a lot for the money,” Certified International Property Specialist for Worth Clark Realty Daniel Seidel told The Epoch Times. A Mexican native, Mr. Seidel says there’s a lot to like about buying a second home in Mexico. “When you experience the culture, the food, the people and the fact it's just a short plane ride away from the States, it’s a popular choice for my clients. If you live there half-time, it’s ideal. My advice is to work here, make money, go there and spend it.” According to a new study from online Real Estate marketplace Point2, based on 136,530 monthly searches on Google, Mexico is the most popular home-buying location, especially for men in the 35- to 44-year-old age group. But what are these buyers looking for? "First off, it should be a better version of the home they already live in and boast all the amenities they love or would love to have; and second, the location should be exceptional. That's why beach and waterfront properties in countries like Mexico, Puerto Rico and Costa Rica immediately come to mind,” Andra Hopulele of Point2 said in a statement to The Epoch Times. She also mirrored Mr. Seidel’s belief that countries like Mexico are high up the wish list because of its proximity to the United States. “These locations also make sense to the American buyer because they're closer than, say, European countries like Italy or Spain, which might be lovely to visit but are harder to access as a homebuyer.” In the Homes2 study, Canada was the second most popular destination for U.S. homebuyers, with monthly searches jumping 54 percent since last year’s edition. Costa Rica was third and Puerto Rico was fourth for most popular locations. “Locations like the ones that made the top 10 seem to have it all," Ms. Hopulele said. "They are not home, but they are close to home; they capture home seekers' imagination with their incredible potential for rest, relaxation, and entertainment due to their amazing climate, never-ending beaches and turquoise waters, and fascinating cultures. Best of all, these homebuying destinations often have more affordable home prices.” However, according to a recent report from the National Association of Realtors (NAR), foreign investors are not returning the favor, and are instead backing off from purchasing in the United States for the same reasons Americans are looking elsewhere: high prices, mortgage rates, and a lack of inventory. According to the NAR, the number of existing homes purchased by foreign buyers from April 2022 to March 2023 decreased to its lowest level since 2009. International buyers purchased $53.3 billion worth of U.S. residential properties during the period, down 9.6 percent from the previous year and the 84,600 existing homes sold was down 14 percent. Mr. Seidel said that while Mexico continues to top lists for U.S. buyers and expats in the country, the journey to homeownership there is challenging. “As a foreigner [in Mexico], it’s difficult unless you have a business in the country or a local bank relationship, but even then, I’m not sure they’d give you the loan,” he said. “It really depends on a pretty sizeable down payment, north of 40 percent. You also have to buy life insurance in case something happens to you so the bank can make sure the mortgage is paid.” Home2’s report stated that Canada’s increase in U.S. buyer attention reflects the “calmer and more peaceful lifestyle” in the country is becoming more appealing to American home seekers “than Mexico’s dreamy beaches and lively, vibrant culture.” Crime in Mexico has become a big concern for Americans looking to move or purchase property. According to a U.S. State Department advisory earlier this year, “Organized crime activity – including gun battles, murder, armed robbery, carjacking, kidnapping, forced disappearances, extortion, and sexual assault – is common along the northern border and in Ciudad Victoria.” There have also been many news reports focused on increased crime in popular tourist destinations such as Cancun and Puerto Vallarta. But Mr. Seidel says the benefits of moving to Mexico outweigh the crime concerns. “The hot buying areas are the beaches like Puerta Vallarta, Cabo [San Lucas] and Oaxaca. Crime in Puerta Vallarta is hit-and-miss and with the current government on the way out, crime has risen and it’s all over the place. You just have to be a little more careful. Listen, parts of London and Spain aren’t safe either,” he said. Tyler Durden Tue, 09/12/2023 - 22:45.....»»