Domestic Migration to Austin Continues with Millennials Leading the Pack
The patterns of relocation during the pandemic aren't changing, with sun-soaked cities like Austin and Tampa still drawing crowds. However, data shows the majority of newcomers to Austin are from the younger demographic, notably millennials. This offers an explanation for why ATX home values have stabilized while rental prices continue to rise.
Data from Bank of America Corp., sourced from anonymous customer transactions up to the first quarter of 2023, offers a clearer picture of America's internal migration patterns. While the momentum has decelerated, the relocation trend persists.
For instance, Austin experienced a growth of 5% from the first quarter of 2020 to that of 2022. This growth was more modest, at 1.5%, between the first quarters of 2022 and 2023. Large influxes of residents usually push both home and rental prices higher. However, according to data from Freddie Mac referenced by Bank of America, even in cities witnessing population growth, the rise in home prices is decelerating quickly, whereas rental prices continue to climb. In April 2023, median rent payments for Bank of America customers in Austin were up 11%.
One explanation for this is that incoming Austin residents are most frequently from the younger generations, who are still saving up in order to enter the housing market.
"Domestic migration continues to be a key theme shaping the housing market," said Anna Zhou, economist for Bank of America Institute. "While rising interest rates are dampening homebuying demand in the near term, the housing market in cities where millennials and baby boomers are moving could see strength in the longer term as the former enter prime home-buying age and the latter downsize their houses."
No matter how early in the buying or selling process you may be, keeping informed on market trends and forecasts is crucial. We are here to be your guide throughout any phase of your real estate journey!
- Frankie & Danielle Hajj, Real Estate Advisors in Austin, TX
Team@SistersSellAustin.com
Grossman & Jones Group, #1 Team, Compass ATX 2021
