As rental prices continue to climb, many tenants are looking for new cities to move to.
Remote working life, price fluctuations and COVID-19 restrictions are prompting more tenants to pick up and leave as they seek more affordable places to live, according to data released by the listings site of rentals Apartment List’s quarterly Tenant migration report. And some of the hottest tech cities, such as San Jose, California, Raleigh, North Carolina, and Austin, Texas, in Silicon Valley, are experiencing one of the highest rotations as tenants move in and out of these. areas.
Almost 40% of renters looking for apartments on the site were looking in a different metropolitan area than where they currently live. And 26% were looking in a different state.
The report was based on rental searches of the list of apartments between July 1 and September 30. Subways include the main town and surrounding towns, suburbs and small towns.
“We can clearly see the effect of the flexibility of remote working,” says Rob warnock, Senior Research Associate at Apartment List. “The pandemic has really changed people’s priorities and what they expect from their living space, coupled with affordability becoming a scarce commodity. People are rethinking where they want to be tenants, which fits their personal lifestyle and economic situation. “
Indeed, rents in cities rose significantly across the country in 2021. Nationally, median rental prices have increased by more than 16% since January. In some warm cities, the increases were more than double that jump.
Rental markets “revolving doors”
Tech hot spots where many residents can work remotely see the highest percentage of tenants in and out. Raleigh and San Jose, in particular, had the highest number (over 50%) of renters looking to relocate to and from cities. Austin also experiences a high turnover rate.
“These cities are located in a tech-friendly part of the country where we know remote jobs are most prevalent. Some people will take advantage of it, while others say, “This is my opportunity to move to a city and afford something that was once unaffordable,” says Warnock.
There are only less than half a dozen cities where rental prices are still lower than they were before the pandemic. According to Apartment List’s estimates, two of the most expensive places in the country, San Francisco and San Jose, are some of those areas where there is still technically a discount to be done.
But that doesn’t mean there is no shortage of good deals. In San Francisco, the average rental price for a one-bedroom apartment was $ 3,300, while it was $ 2,809 in San Jose, according to Apartment List.
Florida remains a hotspot for New Yorkers
New Yorkers continue to be hot for Florida, with its hot climate and no income taxes. About 14% of New York renters were looking for homes in the Sunshine State. And 10% were hunting in Pennsylvania cheaply, and 10% were looking in other parts of New York State. About 7% were looking for properties in California.
Miami is the # 1 city for New York renters, with 6.1% of searches leaving the Big Apple. Subways in Tampa, Orlando, and Jacksonville, Florida are other areas New Yorkers are looking for.
As New Yorkers continue to plant new roots in Florida, there has also been an influx of new tenants from California, says Rose Kemp, an Orlando-based real estate agent with Re / Max Town Center. She also noted that the “snowbird” trend of older renters leaving northern states in the winter for warm weather continues.
“We welcome people from all over, and more from new places like California. It never happened, ”she says. “We are seeing more and more people leaving the cold states of New York, New Jersey and Pennsylvania. We cannot build enough apartments fast enough. Our inventory is low and rentals are in high demand and in high demand.
Most tenants who want to move to another city are from California, according to the Apartment List report. Renters from the Golden State are targeting Alaska, Hawaii, Washington, Oregon, Nevada, Arizona, Utah and Texas. Nevada in particular is where more than half of all apartment searches come from people living in California, because it is a cheaper and close alternative.
More California renters appear to be increasingly affected by the state’s progressive policy and potentially its COVID-19 restrictions, the report suggests. California’s net population broke a record in 2020, when it lost more than 182,000 residents to COVID-19, according to the Associated press.
High state taxes could also be a reason for the exodus. The average selling price of a single-family home in California climbed 23.9%, to $ 758,990 in March, compared to the same period last year, according to the PA.
“The way state governments and local rulers run cities and states has a huge effect on their willingness to stay or not,” Kemp said.