New Case-Shiller data for March shows home prices rose over 20% compared to the same month last year. In several cities, led by Tampa, the number was closer to 30%. Rising mortgage rates have not dampened home price increases, at least so far. Case-Shiller researchers believe there is a chance that could happen.
Home price increases face mortgage rates now above 5%, after two years when 3% mortgages were standard. Inflation and efforts by the Federal Reserve, topped by increases in its loan rate, have caused this. However, home prices have spiked for other reasons.
America became more mobile during the COVID-19 pandemic. Millions, if not tens of millions, of people could work from home as companies shut down offices. Some of these workers will not have to go back. These people have been able to move for lifestyle reasons.
Another reason for the migration is the cost of homes in several metros, particularly big cities on the coasts. Home prices in New York and San Francisco can be more than twice the national median. Some cities inland have much more affordable homes. This also means people can get “more for their money.”
Not every city has enjoyed an influx or is likely to do so in the near future. In Realtor.com’s recent Here Are the Most Popular Cities for Homebuyers in 2022—and the Places People Can’t Wait to Leave report, George Ratiu, manager of economic research for Realtor.com confirmed the reason many people move: “The pandemic led many Americans to revisit priorities, preferences, and timelines.”
To determine which cities people would like to leave, and which people would like to move to, Realtor.com looked at trends in 300 cities. This included surrounding areas of these metros.
Housing in some of the cities that the most people want to depart is expensive. San Jose tops the list. The median home price in the California city is $1,399,000. This is the highest of any city in the country. It is followed by Seattle, where home prices are extremely high at $755,000. Several other cities on the list are smaller and spread around the country.
Here are the 10 cities people most want to leave and their median home prices:
- San Jose, Calif. ($1,399,000)
- Seattle, Wash. ($755,000)
- Washington, D.C. ($545,000)
- Columbus, Ga. ($194,000)
- Gainesville, Fla. ($324,000)
- Fort Collins, Colo. ($635,000)
- South Bend, Ind. ($250,000)
- Manchester, N.H. ($462,000)
- Dover, Del. ($415,000)
- Fargo, N.D. ($360,000)
Click here to see the real cost of living in America’s most expensive cities.
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