Rich Out-of-Town Buyers Are Making It Hard for Locals to Afford Homes in Their Own Cities
Five takeaways:
- A new report from real estate brokerage Redfin finds that the budget disparity between out-of-town homebuyers and locals in “red hot” cities like Philadelphia and Nashville is approaching 30%.
- Redfin’s report showed that in 42 of 49 cities listed, out of town buyers had higher budgets than local buyers. Of the seven remaining, five were in California, which has a disproportionately large share of high earners.
- Nationally, the housing market is surging– a rarity for the winter months. Rising mortgage rates are likely to encourage buyers to act quickly and aggressively.
- Redfin’s report credits the rise of remote work as a prime reason the gap is widening between local buyers and transplant buyers.
- This disparity really affects first time homebuyers in these “hot” markets, who are competing with out-of-town buyers and unable to offset housing prices by selling a home before they buy a new one.
From Sarah Hansen at Money.com
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