Philadelphia is a Bargain If You’re an Out-of-Town Homebuyer
The market has been particularly attractive for those moving from New York, Los Angeles and Washington, D.C
Philadelphia is proving to be one of the most affordable markets for out-of-towners seeking single-family home ownership as its lower prices are ideal coastal market shoppers, according to real estate brokerage Redfin
Looking at what they can spend compared to the locals, Philly flashes the biggest gap in the first half of the year at 39% more, or $588,000 compared to $422,000 for existing citizens.
Based on Redfin searches, many who are looking to move to Philadelphia are coming from coastal job centers with higher salaries and more cash on hand than the locals looking to buy, Redfin said.
“Philadelphia’s popularity with affluent out-of-town homebuyers shot up at the beginning of the pandemic as remote work made it feasible to move to a more affordable area while keeping a high hometown salary,” Redfin reported.
‘Loaded’ New Yorkers Could Also Find
New York is by far the most common origin for out-of-towners moving to Philadelphia, along with Washington, D.C., and Los Angeles.
Redfin figured that New Yorkers come in with an average out-of-town budget of $1.3 million, or 31% more than the locals. Atlanta, Dallas and Portland also could do well to relocate here.
“Even though the housing market has slowed, the share of homebuyers moving to different parts of the country has not,” Redfin deputy chief economist Taylor Marr said in prepared remarks.
“That’s partly because home prices and mortgage rates have increased so much that homebuyers with the flexibility to relocate are seeking out affordable areas. Someone moving from Los Angeles to Philadelphia may have a higher monthly housing payment than they would have six months ago, but it’s still much lower than it would be in coastal California.”
“The market looks different for locals, many of whom are priced out or driven to search in the suburbs because both home prices and mortgage payments have risen significantly in the last year.
Marr said Philly locals could get a break as the market cools and competition slows.