Redfin expects this move to occur as folks settle into their post-pandemic ways of living, according to a press release. The report added that there will be more than a 25% increase in out-of-town movers from 2018 when 11.4 million Americans moved across county lines. These numbers have not been reached since 2004 when 15.3 million Americans moved across county lines.
"That's going to be good news for the economies of affordable places like Buffalo, Cleveland and Pittsburgh," according to the report. "These cities have lost more than 40% of their populations since the 1970s. As high-earning remote workers migrate in next year, they will need to hire local child-care providers, mechanics and plumbers, which will create economic opportunity in these places."
Redfin also expects mortgage rates to remain low between 2.7% and 3%. Additionally, Redfin's chief economist Daryl Fairweather expects to see more homes for sale and a slow in home price growth.
"Redfin expects new listings to grow by over 5%. The increase in new listings combined with slowly rising mortgage rates will cause price growth to moderate to under 5% in 2021, down from 6% this year," said Fairweather in the report.
"People who lived in expensive cities only to be close to work are abandoning their apartments to buy their first home in more affordable places. As small-time landlords in urban areas lose tenants, they will sell their investment properties. This surge in condos for sale, which currently sell for a 17% discount relative to single-family homes, will give many city-dwellers the opportunity to become first-time homebuyers as well."
Click here to read more of Redfin's predictions for the housing market in 2021.
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