Out-Of-Town Buyers Are Willing to Pay 30% More Than Locals in the Hottest U.S. Markets

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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