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Out-of-State Homebuyers Pricing Locals Out

In the country’s hot spots for inbound migration, out-of-town homebuyers are bringing nearly 30% more to spend on homes than locals, making it hard to compete in an already volatile marketplace.

From observation, it appears that the largest gap in home buying budgets between migrants and locals is occurring in metropolitan cities such as Nashville. For example, the average maximum budget for incoming home seekers is $736,868, compared to just $573,382 for locals — a 28.5% difference. For large cities this seem to be the norm, locals are being priced out.

That’s good news for people moving from expensive gateways and coastal areas with astronomical home prices. But if you are local, opportunistic home seekers are causing headaches not only by pricing them out of competitions for homes but also by driving prices firmly upward. Instances noted were in general up approximately 23% year over year.

“We’re seeing a lot of out-of-state transplants, mostly from states like California that have an income tax,” said Nashville Redfin agent Hope Geyer. “People moving from the West Coast will pay way over asking price without batting an eye. In their eyes, they’re getting a deal.

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“It’s really hard for locals to compete right now, and it can be devastating for first-time buyers who aren’t able to offset high prices by selling a home before they buy a new one.”

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