Cities across the U.S. continue to see a rise in housing costs, leaving homeowners and homebuyers to flock to cheaper, more affordable metros.
According to a new report from Redfin, there are four cities that are attracting the most out-of-town buyers, Spokane; Charlotte, North Carolina; Orlando, Florida and Las Vegas.
While Phoenix may be the iBuyer’s dream and a popular metro to move to, it turns out the town with the biggest increase in out-of-town homebuyers is Spokane, Washington.
Currently the most competitive housing market in the country, Spokane saw an increase in home sales of 37% from the fourth quarter of 2018 to Q4 2019, compared to only 5% growth in home supply.
“Tons of people are moving in from the coasts because Spokane is more affordable and less crowded,” said Redfin market manager Michelle Kendrick. “Spokane has all of the basics you would want in a city, but at a great price. It feels like we are in a construction boom. A lot of the new construction is happening on the outskirts of the city, which contributes to our version of traffic.”
“To people from out of town the traffic is nothing, but if you have lived here a long time you do notice it. Job growth has also been a draw for out-of-towners. We have a new Amazon distribution center, the airport is expanding, and the medical industry is big and growing.”
Homebuilding is inexpensive in Spokane, due to the low price of land, Redfin said. In Seattle, land comprises 42% of the value of homes. However in Spokane, land comprises only 23% of the value of homes.
Las Vegas home sales are also growing quickly, at a pace of 15.7% year over year, with 47% of potential homebuyers coming from outside the metro.
“Las Vegas is a pretty competitive market, and I see both new homes and existing homes receiving multiple offers,” said Redfin agent Carol Vandenberg. “I see plenty of buyers from Los Angeles. They are used to the sunshine and the two cities are so connected.”
