Migration Trends Are Ramping Up Again—Here’s Where Movers Are Going
Summary
Increased migration trends are creating new opportunities for real estate investors, particularly in the Sunbelt and Midwest. Hosts should consider adjusting their investment strategies by focusing on long-term stability and negotiating seller concessions, as the market shifts from rapid price growth to more buyer-friendly conditions.
Key Insights
- •The U.S. real estate market is seeing a surge in moves, especially in the Sunbelt. Metros with high turnover are in Texas and other Southern cities, indicating shifting dynamics in housing demand.
- •Existing-home sales increased 1.2% in October, with month-over-month sales up specifically in the Midwest and South. The South saw a 2.8% year-over-year sales increase, with median price up 0.3% from the same time last year.
- •The market is shifting toward more buyer power, with an estimated 500,000 more home sellers than buyers in mid-November, potentially leading to discounts for buyers.
Action Items
- ✓Focus on long-term stability rather than short-term price swings.Effort: lowImpact: medium
- ✓Underwrite based on flat or modest price growth instead of optimistic appreciation.Effort: lowImpact: medium
- ✓Negotiate seller credits or other concessions to improve cash flow or financing.Effort: mediumImpact: medium
Common Mistakes
- ⚠Avoid thin-margin flips or BRRRRs, which are high-risk strategies in the current market.
- ⚠Many would-be homebuyers and sellers are paralyzed by high prices and economic uncertainty.
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