Weather Strong Factor Driving People to Relocate

Posted: April 4, 2021 7:17 am

Despite the ongoing COVID-19 pandemic and the resulting economic crisis, the housing market is booming. More and more American families are relocating, thanks in large part to greater flexibility when it comes to working remotely.

So where are the hottest markets in 2021 and why? It is becoming clear that an area’s climate is one of the top factors that drive Americans to choose a landing destination. Here is where Americans are moving, where they are leaving, and why.

Demand Outpacing Supply: Demand is now outpacing supply in the top 10 most coveted relocation areas. As more people look to chase nicer weather, some areas are having a difficult time keeping up with the demand. While this is great for sellers looking to capitalize on the demand, it can be a tough venture for buyers wanting to relocate.

Top 10 Markets: Not surprisingly, Florida boasts two cities in the top five for relocation. Both Orlando and Miami landed in the top five list of cities that buyers are flocking to this year. As a result, the housing supply decreased by 16.3% in Orlando and a whopping 31.3% in Tampa when compared to 2019. The other three cities rounding out the top five are Phoenix, Dallas, and Austin. All of these locations have a warm climate in common.

According to data from Redin, the next five most popular destinations for transplants this year are Atlanta; Greenville, South Carolina; Charlotte, North Carolina; and Knoxville, Tennessee. Like the top five, all of these cities enjoy a moderate climate, pointing to the fact that weather is indeed a primary consideration for most relocators.

Where Are People Leaving: So with the big influx of people to the Sun Belt, where are they coming from? New York City led the pack of the mass exodus. The number of homes that were put up for sale in the city last December was up by almost 30% when compared to the previous year.

According to Redfin, Los Angeles came in as the metro area with the second-highest outflow of residents in 2020. Rounding out the top five were Chicago, the Bay Area, and Detroit. When looking at these cities, it is easy to deduce that the opportunity for workers to telecommute is encouraging families to move out of the major economic hubs. These families are realizing that they can sell their home in New York City and purchase something at a much lower cost somewhere else while still keeping their same job.

Effects of the Pandemic on Housing Market: The effects of the pandemic have been felt across nearly every aspect of life, including the housing market. With more workers telecommuting, it is easier to justify moving out of the city. The need for more space because of online schooling and a desire to spend more time at home has spurred many families to flock to the suburbs or rural areas of the county.

In addition, many families have felt drawn to move back to their hometowns to care for aging parents. Lastly, record-low mortgage interest rates have encouraged many of those that had been sitting on the sidelines to jump into the housing market.

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