Home News Philly transplants have over $150,000 more to spend on homes than locals — and it’s driving up home prices

Philly transplants have over $150,000 more to spend on homes than locals — and it’s driving up home prices

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Philadelphia may be an affordable metropolis compared to other cities on the East Coast and across the country. Attractive to new residents.

In the first half of 2022, people looking to move to Philadelphia searched on average for a home with a top price of $588,000, according to an online brokerage. Redfin search analytics on your websiteLocals have kept the search limit much lower at $422,000.

As house prices continue to rise, those who primarily move from more expensive cities will benefit from spending an average of 39% more. As a result, prices across the market are pushed up.

” read more: Low Income Makes Philadelphia Homes Unaffordable, Pew Study Finds

Philadelphia has the largest budget gap between out-of-town and local home seekers among the 23 cities analyzed by Redfin. New York, Atlanta and Dallas have the next highest gaps. But New York, for example, has a higher overall budget. The average budget for those who moved to the Big Apple was $1.3 million. This is 31% more than the average local budget.

Only Baltimore and San Antonio, Texas had lower average top budgets for suburbs than Philadelphia, at $395,000 and $515,000 respectively.

Rising house prices and mortgage rates continue to push homebuyers to look outside their cities for more affordable options, said Taylor Marr, deputy chief economist at Redfin. says.

” read more: Rising mortgage rates mean homebuyers are paying hundreds of dollars more each month

“People moving from Los Angeles to Philadelphia high monthly rent “It’s lower than it was six months ago, but it’s a lot lower than it was in coastal California,” he said in a statement. For the same reason, “the market looks different to locals. Many of them are driven to inflate prices or search in the suburbs.”

Trey Dodge, a Philadelphia-based Redfin agent, said home prices have risen over the past two years largely because out-of-town buyers are buying luxury properties. According to Redfin, people who move to Philadelphia typically come from more expensive places with higher incomes and have money from selling valuable real estate.

” read more: For New Yorkers, the Philadelphia area is a real bargain

“Philadelphia has been in the spotlight the last few years, but I think it’s taken a big step forward since COVID hit,” he said, adding that more people were considering other cities when they started working remotely. Dodge said.

Some of his recent buyers have come from San Francisco, Texas, Boston, and Washington, but mostly his out-of-town buyer is from New YorkSome of his clients want to return to where they or their partners grew up. These buyers “want to live in the city, but New York and DC, where we’re located, have exponentially higher costs of living,” he said.

” read more: Homebuyers may finally have some relief as supply increases and price growth slows

House prices are rising everywhere, but in Philadelphia they haven’t risen as much as in New York. Philadelphia will continue to attract out-of-town buyers, he said.

“They can buy a nice big house here,” said Dodge.

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