Affordability and job prospects remain the key drivers for those seeking greener pastures outside of what are considered the nation’s priciest housing markets.

At a Glance:
  • Outbound home searches exceed 60% nationally in second quarter
  • San Jose leads with 94% of shoppers seeking other markets
  • Washington, D.C., and Seattle rank second and third in outbound searches

Outbound home shopping trends for the second quarter of this year exceeded 60%, a significant increase over 2019 when searches hit 48%, according to recent market research from Realtor.com.

But affordability can mean different things to different people. The report classifies affordability as “relative” to the local market and the budget of prospective buyers.

“Affordability retains shoppers when present, pulls them in from pricier markets, and pushes them out once it is gone,” said Jiayi Xu, a senior economist for Realtor.com.

On a regional scale, outbound home shopping traffic (65%) was highest in the western portion of the country. Those in the South registered 59.8%, followed by the Northeast (58.3%) and the Midwest at 56.1%.

On the individual market level, San Jose, California, retains its place as the most expensive city of the nation’s top 100 metros. Along with having the highest median home price, just shy of $1.4 million ― 225% above the national median ― according to the report, shoppers there are browsing listings elsewhere with hopes of leaving the market totaled 94%.

Most of those hoping to escape San Jose (40%) are looking no further than about 50 miles up the California coast to San Francisco. While Bay Area home prices are 28% lower than their coastal counterpart, the median price for a home in the City by the Bay peeks at 133% above the national average.

Washington, D.C., placed second on the overall list for outbound shoppers, with 86% of new home seekers, while Seattle rounded out the top three at 84%.

Similar to the pattern in California, District of Columbia residents are primarily looking at neighboring Baltimore, Maryland, where home prices are reported to be 35% lower. While in the Pacific Northwest, those in Seattle are searching slightly south in Portland, which boasts home prices 24% below their neighbor to the north.

Employment and job prospects also play a key role for out-of-market home seekers. The report detailed how Birmingham, Alabama, residents, with a 72% rate of outbound market seekers, are looking to Nashville, Tennessee, despite the Music City’s median housing price listed 80% above Birmingham’s.

Nashville’s stronger job market, highlighted by a 3.2% unemployment rate, as well as no state income tax, were two prime reasons those in Alabama are looking for a change in the Music City.