Some of the most competitive cities in the U.S. are seeing an influx of migrating Americans taking over local markets with deep pockets, posing a challenge for hometown buyers with smaller budgets. People relocating to the hottest housing markets have nearly 30% more to spend on homes than local buyers, stirring up even more competition in an already heated market, Bloomberg reports.
Out-of-towners moving from major cities like New York are bringing big budgets into less inflated markets, specifically in areas like Tennessee, where new arrivals had an average $736,868 to spend on homes in 2021 compared to the $573,382 average for local buyers.
New arrivals in Nashville, Tennessee, had $736,868 to spend on homes in 2021, 28.5% higher than the $573,382 average budget for locals, Redfin said. Philadelphia followed with an average newcomer budget of $559,215, 28.4% higher than local budgets of $435,609. New York rounded out the top three with an average budget of $1.2 million for out-of-town buyers, a 26.5% increase over the local average of $957,506.
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