Where people plan to move to, and hope to stay away from
This is one bridge people don’t want to cross anymore.
Data released Thursday from real estate research firm ATTOM Data Solutions found that San Francisco is the No. 1 city that people are NOT planning to buy a home in. The firm analyzed mortgage loan applications, which are a good measure of where people plan to and will eventually buy, in 122 cities to determine markets that are getting a lot of activity from buyers, and those that a duds.
Top 5 markets people are not planning to buy a home in
San Francisco, California
Rochester, New York
Providence, Rhode Island
Grand Rapids, Michigan
Meanwhile, people are planning to move to other spots.
Top 5 markets people are planning to buy a home in
Colorado Springs, Colorado
So why are people flocking to places like Colorado Springs but shunning other places? The areas with a good mix of relatively affordable housing and access to solid jobs tend to see a lot of home-buying activity, explains Daren Blomquist, senior vice president at ATTOM Data Solutions. Meanwhile, people often shy away from markets with super high home prices and/or not a great job market.
This helps explains why few people are buying in San Francisco. The median home price now sits above $1.2 million. What’s more, there are signs of a weakening of the job market in the area. Consider: Annual tech job growth in the Bay Area in 2016 was just 3.5% overall, significantly less than the 6% growth in 2015 or the 6.4% growth. As Glassdoor chief economist Andrew Chamberlain told Moneyish, the cost of living is preventing many people in the tech industry from taking jobs there, especially as less pricey cities like Seattle and Austin have similar jobs.
Meanwhile, Colorado Springs has homes that are around $250,000, and an unemployment rate of just 2.4$, which is well below the the national average.
© 2018 Dow Jones & Company, Inc. All Rights Reserved