Homebuyers are becoming less impressed by the low inventory and high prices of coastal cities and finding comfort in America’s Heartland. Cleveland, Cincinnati, Indianapolis, and Memphis are just some of the metros that CNBC says have been experiencing the strongest price gains in the nation. There are also some cities seeing large price increases as a result of high demand outside the Midwest as well, such as Pittsburgh, Boise, and Austin, TX. Prices in these cities are at a minimum 10% higher compared to the previous year. S&P Dow Jones Indices’ managing director says all its data points toward Americans relocating from more densely populated areas, such as coastal cities, and headed toward the suburbs.
These have all been historically more affordable markets, and markets that generally have more inventory of homes available for sale. That makes the suddenly strong price growth in the middle of the country that much more striking.
Much of it is likely to do with the new ability to work from anywhere due to the coronavirus. People are leaving larger more expensive metropolitan markets and heading to less expensive markets where they can get more space and land for their money.