Study: Home prices are rising rapidly, but two-thirds of city sellers who moved to a smaller metro traded up without spending more money.
SEATTLE – About two-thirds of city dwellers who bought a larger home in a different metro over the last year have the same or lower housing costs than they did before their move, according to a new Redfin survey: 78% said they have the same amount of disposable income or more than they did before, and 64% said they moved into a home that is the same size or larger than their previous property.
Perhaps more importantly, 80% said they’re happier since they moved.
Due in part to the pandemic and local lock-downs, many buyers moved to smaller metro areas that offer more affordable housing. When asked why they decided to make their specific move, more than a quarter said affordability motivated it; 22% said lower taxes also was a factor.
“For most people, relocating to a different metro area probably wasn’t a knee-jerk reaction to the pandemic,” says Taylor Marr, Redfin’s lead economist. “A lot of Americans had already been considering relocating, but they were blocked from actually making the move because they had to stay close to their office or wanted to live near friends or their child’s school.
“The pandemic and resulting work-from-home culture has removed some of those barriers, allowing many people to choose where they live based on factors like affordability, proximity to family and weather. And the loosening of social ties that come with remote work, remote schooling and a lack of in-person events made it somewhat easier for families to leave their comfort zone and try somewhere new. Those people are likely to be satisfied with their moves because the circumstances of the pandemic have allowed them to chase their dreams.”
Source: “Eight Out of 10 People Who Relocated During the Pandemic Are in a Similar or Better Financial Position Post-Move,” Redfin (May 28, 2021)
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