Home workers drove up incomes and house prices in these cities

0
5
Note: Change in the house price measured from December 2019 to December 2021; Data: Redfin analysis of HMDA data; Map: Skye Witley/TSWT

Remote work arbitration isn’t what it used to be. I’m talking about the pandemic-driven phenomenon of white-collar workers suddenly free to work from home, using their higher salaries to buy homes in cheaper areas.

The big picture: All those homeworkers pushed up house prices in the previously cheap areas and made them more expensive. (Rentals also rose.)

  • In these “pandemic boomtowns” like Boise and Austin, homebuyer incomes (the wages of all upscale newcomers) have skyrocketed over the past two years — and home prices have soared with them, according to a new Redfin analysis of federal mortgage loan data. shared exclusively with TSWT.
  • In Boise, the banner of pandemic real estate, the median income for home buyers in 2021 was $98,000 — a 24% increase from two years earlier. Meanwhile, house prices rose by 53% during that period.
  • In Austin, it was $137,000 – a 19% increase.
See also  Uttar Pradesh: Chief Minister Yogi Adityanath sues Lucknow administration, police over Lulu mall protests

On the other hand: Homebuyers’ incomes fell 1.5% in San Francisco as those workers fled to cheaper environments.

  • SF and Baton Rouge, La., are the only major metropolitan cities where home prices fell in the two years Redfin surveyed.
  • But maybe don’t pack your bags for SF unless you’re a millionaire… the city’s median home price fell just 0.5% to $1.58 million.
See also  The Four Stages of Republican Misinformation

What’s next: These booms are not necessarily broken, but they are slowing down as higher mortgage rates along with higher prices crush demand.

LEAVE A REPLY

Please enter your comment!
Please enter your name here