Charted: Most Popular Markets People Are Moving To

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Home-price growth starting to cool link

• U.S. home prices increased by less than 5% year-over-year for the second month in a row. June saw only a 0.3% rise from May, significantly lower than the pre-pandemic average growth rate of 0.8%.

• High mortgage rates and low inventory continue to affect the market, limiting both first-time and repeat homebuyers. This stagnation is expected to persist until mortgage rates decline, which is anticipated later this year.

• South Dakota had the highest annual price growth at 10%, while Texas and Louisiana saw gains of less than 1%. Miami led the metro areas with a 10% increase, while Houston and Denver grew at under 2%.

Renter Households Growing Three Times Faster Than Homeowner Households link

• The number of renter households in the U.S. grew three times faster than homeowner households in Q2 2024, due to the widening gap between rent payments and mortgage costs. Renter households increased by 1.9% year-over-year, reaching a record 45.2 million.

• Median apartment asking rent rose by less than 1% year-over-year in June, while median mortgage payments surged by roughly 5%. Asking rents are now 23% above pre-pandemic levels, with mortgage payments up 90% from the same period.

• Homeownership grew at its slowest pace since 2019, with an increase of just 0.6% to 86.3 million. The disparity in costs is driving more people towards renting as owning a home becomes increasingly unaffordable.

More People Are Moving to Fire- and Flood-Prone America link

• High-fire-risk counties in the U.S. saw a net inflow of 63,000 people in 2023, with Texas driving much of this migration. Despite the risks, affordable housing and low taxes make Texas attractive.

• High-flood-risk counties experienced a net inflow of 16,000 people, mainly to Florida. Florida's share of this migration has decreased, suggesting growing awareness of flood risks.

• In contrast, California's high-fire-risk areas saw a net outflow, indicating increasing sensitivity to climate risks among residents.

Office Tenants Demonstrate Strong Preference for Higher Floors link

• Office tenants are showing a marked preference for higher floors in buildings, driven by better views and perceived status. This trend is particularly prominent in major cities like New York, Chicago, and Los Angeles.

• Higher floors command a rental premium, with some cases showing up to a 15% increase in rent compared to lower floors. This preference highlights a demand for premium office spaces despite overall market fluctuations.

• Buildings with better amenities and modern designs are also attracting more tenants to higher floors. Tenants are willing to pay more for the additional benefits these floors offer, including less noise and better natural light.

Most Popular Markets People Are Moving To link

• Columbus, OH is the most popular housing market in the U.S., driven by affordability and nationwide interest, with views per property 2.4 times the national average. The market attracts diverse regional interest, including 13.7% from the Northeast and 15.4% from the South.

• Half of the most popular markets are in the South, with Knoxville, TN, standing out due to its housing affordability, quality of life, and job opportunities. Knoxville's homes received 1.7 times the national average views, with significant interest from the South (67.3%) and Northeast (12.9%).

• Pittsburgh, PA, is the top market in the Northeast, offering a lower cost of living and a strong economy. The city received 0.9% of national online traffic, with 72.4% of interest coming from the Northeast, making it a popular choice for new college graduates.

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Link to the listing

That's all, folks.

Cheers,

Vidit

P.S - Read past newsletters here