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Realtor.com senior economist Ralph McLaughlin says homebuyers and sellers have ‘more time’ than they think to get a good deal.
Election swing states, Arizona and Nevada, have seen an influx of new residents, particularly from California, according to Redfin.
“People are moving to Arizona and Nevada primarily for the lower cost of living and plethora of job opportunities,” Redfin Chief Economist Daryl Fairweather told FOX Business.
The trend of people moving from more expensive coastal cities, such as New York or San Francisco, to more affordable states isn’t new. Redfin Senior Economist Elijah de la Campa attributed the pandemic to supercharging this trend.
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Redfin previously reported in 2022 on the migration of homebuyers leaving expensive coastal areas like New York, Boston, Los Angeles, New York, and Washington, D.C. In October of that year, the share of relocating buyers out of all buyers was at its highest level since at least 2017, when Redfin started tracking migration data.
What’s driving people to these states?
Ralph McLaughlin, senior economist at Realtor.com, said its unsurprising that Arizona and Nevada “remain top destinations for Californian expats.”
For one, they are neighboring states, and people who move are more likely to make shorter moves than longer moves. They also have similar landscapes and weather.
Phoenix, Arizona, also made the list for the top cities to visit this Thanksgiving holiday. (iStock / iStock)
However, the home prices are also “significantly lower than California, offering a similar type of lifestyle at a more affordable price point,” according to McLaughlin.
Additionally, with lower property taxes, these states “offer some fiscal advantages to relocating beyond just having less expensive housing.”
In particular, McLaughlin noted that job growth is also significantly greater in Arizona and Nevada, with growth rates of 2.3% and 3.3% respectively. That compares to just 1.6% in California.
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Property taxes
Both Arizona and Nevada were in the top 12 states with the lowest property taxes. According to Rocket Mortgage, the average annual tax rate in Nevada is $1,369.60. In Arizona, the rate is $2,519.82. In contrast, California’s average annual property tax rate is about $5,347.48.
Las Vegas, Nevada, also ranked high on the list. (iStock / iStock)
Home prices
Arizona home prices jumped 1.9% in June 2024 compared to a year ago and sold for a median price of $451,000, according to Redfin.
In Nevada, prices were up 5.8% in June compared to a year ago and sold for a median price of $461,700.
Luxurious South Orange County, California on a beautiful day (adamkaz / iStock)
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Comparatively, the cost of homes in California was up 7.6% in June compared to last year, selling for a median price of $856,700, according to Redfin.
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