Low mortgage rates and remote work opportunities have encouraged more Americans to move over the past year. According to Zillow data, they’re moving into larger, less expensive homes.
Zillow’s analysis included data from trucking company North American Van Lines. The data shows that on average, Americans are relocating to areas where homes are nearly $27,000 less expensive and 33 square feet larger than where they moved from.
The average home value in origin ZIP codes was $419,344, while the average home value of the destination ZIP code was $392,381. Zillow pointed out the vast difference in home value change from 2019, where destination ZIP codes were only about $3,362 less.
“These data reflect what Zillow calls the ‘Great Reshuffling,’ an ongoing confluence of social, demographic and economic factors spurring high demand for housing as Americans rethink where they live,” wrote Jeff Tucker, senior economist at Zillow.
Separate research has shown that while people are moving out of larger cities, they’re mostly moving out of city centers and into the suburban ring, called the donut, according to MarketWatch. Researchers attribute this trend to Americans expecting a hybrid work model in the future.
The ability to split time between the office and working from home means that Americans can move further away to find bigger homes for better deals. However, Tucker wrote that this trend could contribute to home prices evening out nationwide as more people move towards affordable areas.
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