If you’re moving to a new town, there’s a good chance you’re spending more for your new home than the locals would—and in some areas, a lot more.
In 9 of 11 popular migration destination cities, homebuyers moving from out of town paid more over asking price in the 12 months that ended June 30 than those who were moving within the same area, according to an analysis published Monday by real estate firm Redfin.
In Austin, Texas, the most extreme example that Redfin found, out-of-towners paid an average of 7.8% over asking price for homes, while locals paid 3.7% over asking price. The median price paid by newcomers for a house in Austin was $470,000, compared to $447,500 for locals. Of the 11 cities, only in Miami and Cape Coral, Florida, did locals typically pay more over the asking price than out-of-towners did.
“People moving into Austin from out of town tend to come with a lot of cash from selling homes in expensive West Coast cities—especially the Bay Area,” said Austin Redfin agent Andrew Vallejo in the report. “And those of them who can work remotely often come with high West Coast salaries, too. They typically have a lot more buying power than locals, and they can afford to search for and ultimately buy bigger, pricier homes.”
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