Jacksonville, Austin, and Charlotte drove total U.S. housing market value up 13% during the pandemic

SEATTLE, March 11, 2021 / PRNewswire / – (NASDAQ: RDFN) – The total value of homes in the US is up 13.4% ($ 4 trillion) during the coronavirus pandemic to $ 33.4 trillion in the February 2021 of $ 29.4 trillion in the February 2020According to a new report from Redfin (www.redfin.com), the technology-based real estate agent. The increase was driven by Jacksonville, FL, Austin, TX, Charlotte, NC, Phoenix and Sacramento, CA – relatively affordable, sunny destinations that have attracted an influx of wealthy shoppers from dense coastal cities.

One reason for the price increase is that so many people have been able to move thanks to remote working. Wealthy Americans and big corporations are gone San Francisco and new York for cheaper locales like Austin and Charlotteand they took their wallets with them. As a result, house values ​​have risen particularly sharply in these places. This has benefited families who already own homes but have brought home ownership further out of reach for many Americans, exacerbating wealth inequality in the United States

Affordable migration hotspots see the largest percentage increases in market value

The total value of the houses in Jacksonville jumped 21.1% over the previous year $ 165.9 billion in February 2021 – the largest percentage increase among the 50 most populous US metropolitan areas. It followed Austin (+ 17.9%), Charlotte (+ 17.3%), Phoenix (+ 16.1%) and Sacramento (+ 14.8%). The top 10 were rounded off by Detroit, Milwaukee, Riverside, CA., Providence, RI and West Palm Beach, FLAll recorded a market value increase of more than 12%.

Four of the top 10 metros – Jacksonville, Charlotte, Detroit and Milwaukee – had a median home price below the national level ($ 342,326) in January, the last month for which sales price data is available.

“Lots of cash buyers come to Jacksonville from big cities like LA to benefit from lower taxes, and they offer sellers well above their asking prices. They are discovering that they can afford a beautiful beach house here when they could only buy a humble apartment before, “said the local Redfin real estate agent Heather Kruayai. “Locals are being outbid because they can’t compete with money outside of the state and there just aren’t enough houses in the market.”

Kruayai continued, “Sellers are determined to make great dollars because they know how hot the market is. When they see a home similar to theirs being sold $ 480,000, you will want to list yours $ 520,000. They are confident that rising demand will continue to drive prices higher. “

Three of the top 10 metros – Austin, Phoenix and Sacramento – have consistently made Redfin a top migration destination during the pandemic. Austin had a greater net influx of residents in January than any other major subway, meaning more people moved in than wanted to leave. Almost 45% of Redfin.com house searches in Austin came from users in other metropolitan areas in January, after 32.6% in the previous year.

A recent Redfin analysis found that out-of-towers moving to a handful of the country’s top migratory destinations had larger home buying budgets than local residents. Average home budget for out-of-towers moving Austin was in 2020 $ 852,27632.2% higher than that $ 644,771 average budget for local buyers.

“This is the busiest market I’ve seen in 15 years,” Austin Redfin told Agent Andrew Vallejo. “Three quarters of my customers come from Bay AreaMany of them work for large companies such as Google, Facebook, Oracle, Amazon or Tesla, all of which have built offices here or are in the process of doing so. “With so much equity in the financial markets, these buyers have a lot of purchasing power. Sellers and builders are raising prices because they see that these buyers are willing to pay.”

While the surge in US real estate values ​​has made home ownership more difficult for many Americans, it has been correlated with an increase in new businesses across the country. in the TexasBusiness start-ups rose 66% year over year in January (above the national growth of 58%) as many entrepreneurs used their homes as collateral to finance their businesses.

Summary of the top 10 metros with the largest increase in property market value
All data refer to February unless otherwise stated.

Subway area

year for year
Total change
House value (%)

Total value of
Houses (billions of
$)

year for year
Total change
Value of houses
(Billions of dollars)

Median sales
Price (January
2021)

year for year
Change in median sales
Price (%) (January
2021)

Jacksonville, FL

21.1%

$ 165.9

$ 28.9

$ 270,477

9.7%

Austin, TX

17.9%

$ 295.2

$ 44.7

$ 401,756

22.3%

Charlotte, NC

17.3%

$ 308.0

$ 45.5

$ 308,959

11.7%

Phoenix, AZ

16.1%

$ 644.1

$ 89.1

$ 353,560

17.6%

Sacramento, CA.

14.8%

$ 379.2

$ 48.7

$ 499,557

16.3%

Detroit, MI

13.4%

$ 106.6

$ 12.6

$ 165,609

15.3%

Milwaukee, WI

13.2%

$ 130.4

$ 15.2

$ 260,735

12.1%

Riverside, CA.

12.8%

$ 580.9

$ 66.1

$ 464,573

18.8%

Providence, RI

12.8%

$ 212.4

$ 24.1

$ 343,628

fifteen%

West Palm Beach, FL

12.7%

$ 295.3

$ 33.3

$ 359,969

23.1%

The full report, including a full data breakout for the 50 most populous US metros, can be found at: https://www.redfin.com/news/real-estate-home-value-pandemic-february-2021.

About Redfin
Redfin (www.redfin.com) is a technology-driven residential real estate company redefining real estate for the consumer in a commission-driven industry. We do this by integrating every step of the home buying and selling process and combining our own agents with our own technology to create a service that is faster, better, and cheaper. We provide brokerage, iBuying, mortgage and title services, and we also operate the nation’s leading brokerage website, which offers consumers a variety of online tools including Redfin Estimation. We represent people who buy and sell homes in over 95 markets The United States and Canada. Since our introduction in 2006, we’ve almost saved our customers $ 1 billion and we’ve helped them buy or sell more than 310,000 homes worth more than $ 152 billion.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. Visit the Redfin Data Center to learn more about real estate market trends and download data. To be added to Redfin ‘s press release distribution list, send an email [email protected]. Click here to view the Redfin Press Center.

SOURCE Redfin

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