Americans Still on the Move Even as Worst of Pandemic Fades

Cost pressures are among the factors forcing some out-of-state home shoppers to leave their areas, while others are approaching relocation as an opportunity to explore living in areas they couldn’t have before COVID.

The share of buyers interested in out-of-state listings grew 4.1 percentage points year-over-year nationwide in Q1 with six of the top 10 relocation destinations in the Sun Belt, according to Realtor.com.

Home flexibility brought on by the pandemic and companies shifting from requiring their employees to work in their offices are driving this trend—not to mention the favorable weather and lifestyle in some of these markets.

Harvey Hernandez, founder & CEO of Newgard Development Group, tells GlobeSt.com that Miami has quickly transformed into a progressive cultural and tech hub, largely in part to Silicon Valley and Wall Street businesses establishing their new addresses there—and the pandemic has intensified these trends.

“Out-of-state homebuyers realize that with these opportunities, coupled with Florida’s year-round warmth and appealing tax system, there’s no better city to call home,” Hernandez said.

Home builders, well aware of these draws, are marketing their properties accordingly. Dominic Pickering, executive director, West Coast Florida for BTI Partners, tells GlobeSt.com that the firm’s strategy has been to promote that waterfront lifestyle to potential out-of-state buyers who are purchasing condos to have access to the private marina where they can dock vessels up to 90 feet.

“With finite waterfront space available it can be difficult to find a private place to dock big yachts in Florida, and at Marina Pointe, the yachts are on our owners’ doorsteps.”

Try ‘More Affordable’ New Mexico

Garret Price, president, Price Land Development Group, tells GlobeSt.com that he anticipates Albuquerque would become a top national residential housing destination as more buyers look for affordable homes with mild four seasons and proximity to a culturally-sophisticated urban hub.

“In addition to offering both the big-city feel in downtown Albuquerque, suburbs such as Rio Rancho provide the peace of neighborhoods nestled in the rolling high desert amongst hiking, biking and running trails.” 

He said a recent influx of top employers to the state such as Netflix, NBC Universal, SCEYE, Prent, NTx, LaSen, Kairos Power, Faneuil and Ganymede Games significantly impacted its residential housing demand this year, especially from other nearby Sun Belt cities such as Phoenix and Los Angeles.

Associated Broker Lisa Lucky of Russ Lyon Sotheby’s International Realty, tells GlobeSt.com that out-of-state home buyers continue to flock to Scottsdale. 

“In the past, we’ve always been a great second home destination,” Lucky said. “That continues, but we’ve also seen many more purchases related to buyers’ ability to work remotely. If you can work remotely, why not come to the Valley of the Sun. Prices have risen dramatically in the last couple of years in the area. However, our overall lower cost of living and affordability compared to other northern cities continues to bring buyers our way.”

A ‘Renaissance’ in NYC

Away from the Sun Belt, Stan Ponte, senior global real estate advisor and associate broker, Sotheby’s International Realty – East Side Manhattan Brokerage, tells GlobeSt.com that this is the first time in his 23 years of selling real estate in New York where it is neither a buyers’ or sellers’ market. “It’s a deal-making market. As one of the biggest believers in, and cheerleader for New York City, I am not surprised that NYC is one of the top 10 destinations attracting out-of-state homebuyers today.

“NYC is experiencing a renaissance of theater, art, dance, and music. With more transactions over the past five quarters than any time in our history, there is confidence and excitement in the air. Now is the time for buyers to get that apartment in NYC that they have always dreamed of having.”