RALEIGH – Analysis by real estate data firm Zillow found that the average long-distance move or those leaving a metropolitan area for a new one have moved to Raleigh zip codes, where the average home value was nearly $ 70,000 lower than the average home price in the U.S. zip codes, that they left.
And the houses they bought in Raleigh were, on average, 370 square feet larger than the houses they left.
The numbers are based on moving data from North American Van Lines and are published as a triangle preparing for an influx of high-paying tech jobs from companies like Apple, Google, Fidelity and numerous biotech firms.
“When a significant number of new jobs are created in a region, it naturally attracts new home buyers,” said Chris Glynn, chief economist at Zillow, in an interview with WRAL TechWire. “What makes the triangle so desirable is that it offers relatively affordable housing, a strong economy, top universities, and a high quality of life.
“We are seeing evidence of this growth in the housing market,” he added.
Not that Raleigh houses are cheap. Indeed, prices are rising. Fast.
Zillow data shows the typical Raleigh home is now worth $ 327,048, up 12.3% or $ 35,700 from last April and 1.5% since March, beating the Zillow national average. Nationally, home appreciation is up 11.6% compared to that time over the past year, Glynn said.
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“It is likely that overall job creation will add strong demand for housing, although the housing value effects cannot be isolated,” said Glynn. “We know the triangle is at the intersection of two strong trends in housing demand: relative affordability and sunshine.”
Zillow calls the ongoing convergence of social, demographic and economic factors that are fueling the rising demand for living space the “Great Reshuffle”. They say that today, more than ever, people are considering moving from larger cities where housing costs and prices have been high compared to other markets across the country. Their data analysis showed that the five markets with the most outbound movers were Chicago, New York City, Los Angeles, San Diego, and San Francisco.
Meanwhile, people moving from Raleigh to other metropolitan areas saw the opposite.
For homes that averaged 272 square feet smaller, these moving companies ended up in zip codes where the average home value is more than $ 51,000 higher than the neighborhood they left.
“Affordable, mid-size subway areas along the Sun Belt have significantly more people coming than going, especially from more expensive, larger cities further north and on the coast,” said Jeff Tucker, chief economist at Zillow. “The pandemic has catalyzed purchases by millennial first-time buyers, many of whom can now work from anywhere.”
A related Zillow study also found that Charlotte was among the top three regions with the highest net inbound moves in the first eleven months of 2020. Many of these out-of-market moves come from the New York City metropolitan area.
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Zillow’s survey data found that 7 in 10 people would feel comfortable once vaccine distribution became widespread, and 11% of people said they had moved during the pandemic.
“Remote and flexible work arrangements have made places like Raleigh a realistic destination for households looking to spend slightly less on housing and live outdoors year round,” said Glynn.