In recent years, the real estate market has been taking sellers and buyers alike on an extreme rollercoaster ride. More and more people seemed to be packing up and moving during this timeframe, and not just across town, but out of state. In fact, permanent address changes across state lines jumped from 1.3% in 2018 to 3.3% in 2022 . That’s a significant uptick.
This trend shows certain regions and even specific states as more popular destinations than others. For instance, Texas and Florida experienced the highest influx of people in 2021. Mississippi was also a popular choice, as it saw a 23% increase in mover interest from 2021 to 2022.
On the flip side of this, California reported the largest loss in residents with more than 367,000 people opting for more affordable pastures in 2021 alone. The same goes for New York and Illinois, which saw losses of 352,000 and 122,000, respectively.
Why did so many Americans choose to relocate? While the choices were personal, there are several factors influencing the decision. According to surveys, the reasons behind moving for most included remote work opportunities and lower costs of living.
There were certain market factors at play as well. Mortgage interest rates hit historic lows, making the hurdle of homeownership easier to overcome for buyers. For sellers, the prices of homes increased significantly at this time, enticing many to sell.
The result of these at-times clashing conditions was the creation of a tumultuous market and a low housing inventory. In March of 2023, we reached a considerable housing shortage, with only a 2.6-month supply. Typically, a six-month supply is needed to fully meet buyer demand and keep the real estate market on track.
Looking at data such as this helps to make sense of what’s going on as well as what to expect in the future. If you want to learn more about nationwide moving trends, please see the accompanying resource.
Graphic created by New City Moving.
Author bio: Brian Slater is the founder and President of New City Moving, a moving company in Chicago. Slater has more than 10 years of experience in the industry and focuses on providing top-notch customer service as well as a stress-free moving environment.
Resources
https://drive.google.com/file/d/1NBR_lmyhGKcBx34RZMl698KZmq1HRVuV/view?usp=sharing
2023 Moving Trends Report: Where are Americans moving right now?
https://www.forbes.com/home-improvement/moving-services/2023-moving-statistics-trends