In pursuit of more affordable housing, American homebuyers are increasingly relocating to states with favorable home markets.

A recent study published by Zillow and national moving company United Van Lines found that households that moved last year ended up in states where they could save on average $7.500 in housing costs.

Incidentally, that savings threshold falls below 2021 levels of $8,900 but remains a far cry from the typical pre-pandemic savings target of $2,800.

The top destinations where homebuyers fled were Charlotte, Providence, Indianapolis, Orlando, and Raleigh—cities that received mixed ratings in Creditnews Researchs best and worst metro areas for first-time homebuyers.

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The migration isn’t reserved for low to moderate-income earners, either. United Van Lines’ clientele tends to be older people with incomes that surpass the national average.

They too are flocking to less pricey metropolitan areas, a sign that high home prices and lofty interest rates are taking a toll on everyone.

While relocating is one way to deal with the U.S. housing affordability crisis, it might get tiring after a while. According to a report by real estate firm Redfin, the housing market is bracing for a buying bonanza in which home prices could climb in 2024.

America’s housing affordability crisis remains in focus

The spring homebuying season is almost here. While temperatures are sure to warm up, home prices might not.

The reason? Real estate activity is expected to return with a vengeance due in part to pent-up demand, possibly triggering price increases through the end of this year.

Redfin predicts that if the the spring real estate season, a stretch that starts in March and spills over into the summer months, is as strong as expected, it could drive prices up to 5% higher by year-end.

The housing market experienced a taste of that demand at the end of 2023 when mortgage rates began to ease.

Mortgage rates have relaxed from a high of approximately 8% in October to approximately 6.6% as of mid-February. Both Redfin and Zillow forecast mortgage rates will decline modestly to 6.5% by the end of this year.

Interest rates are widely expected to fall, but a higher than anticipated January inflation reading may have thrown the Fed a curveball.

Redfin’s chief economist Daryl Fairweather believes this year’s spring buying season will outperform last year, as a result of which prices are headed in only one direction.

"I think we hit rock bottom and the only way to go from here is up," she said.

Although real estate prices are expected to climb nationwide, it doesn't mean there arent deals to be had. As Creditnews Research found in its latest report, starter homes starter homes are still relatively affordable even in places like Austin, Miami, and Dallas.