Florida and Texas gaining residents at much slower rate, eating into homebuyer demand
The flow of U.S. residents moving into Florida, Texas and other parts of the Sun Belt slowed significantly in 2024, eating into homebuyer demand, a Redfin news release says.
The rising cost of housing and the increasing frequency of natural disasters are slowing migration to certain Florida and Texas metros, Redfin reports.
Austin, in particular, saw one of the biggest slowdowns in the nation with a net inflow of about 14,000 residents last year, down from about 22,000 residents in 2023, Redfin said, citing U.S. Census data. Net inflow is how many more U.S. residents move into a metro area than move out; it includes domestic moves only.
"The rising cost of housing is one factor in slowing migration to the Sun Belt, and slowing migration is now one factor pushing homebuying demand down in those areas," Redfin said.
The release went on to say: "In some of the places where migration is slowing most, sale prices are either falling or they're flat. That's due partly to the pandemic construction boom and surging supply in Florida and Texas. There's now a surplus of homes and apartments in parts of those states, and slowing migration — along with locals being priced out — means there are fewer people to buy them, which is one reason demand feels slow."
"Metros like Austin were once viewed as affordable alternatives to expensive hubs like San Francisco and New York, but that gap is shrinking," the report said. "As a result, those who are able to relocate may be considering other parts of the country, like the Midwest or parts of the Northeast, because they're more affordable than the Sun Belt and less prone to natural disasters. For instance, Minneapolis and Indianapolis, where median home-sale and rent prices are lower than they are in places like Miami or Austin, are among the metro areas that saw migration rise in 2024."
In March, home sales fell 9.3% in the Austin region compared with March 2024. The median sales price was $446,000, basically flat (down 0.9%) from March a year ago, according to the Austin Board of Realtors.
Within Austin's city limits, home sales fell about 9% in March year-over-year. Half of the homes sold for $590,750 and half for less, for a 5.5% increase in the median closing price.
This article originally appeared on Austin American-Statesman: Austin sees one of biggest slowdowns in new residents in U.S.: report
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