The cost of living is skyrocketing in certain “migration destination” cities where those fleeing mostly blue states are landing, according to a newly released report.
Redfin released the analysis, which shows that cities like Atlanta, Phoenix and Tampa have seen higher rates of inflation than the country overall. According to the report, those increases are “double the inflation rates in San Francisco and New York, places people are moving away from.”
“Migration into those places is one reason for rapidly rising prices of consumer goods and services,” Redfin said. “Because of high inflation, including rising home prices, the financial advantage of living in what are now relatively affordable places is likely to diminish.”
U.S. home prices surged in October as the housing market remains strong after the COVID-19 pandemic, according to a key economic indicator.
Home prices climbed 18.4% in October compared to one year earlier, a deceleration from a 19.1% year-over-year increase in September, according to the S&P Corelogic Case-Shiller Index. Experts surveyed by The Wall Street Journal projected the index would grow 18.6% in November.
All 20 cities included in the index posted double-digit annualized gains. Phoenix saw a 32.3% increase, Tampa Bay, Florida, grew 28.1% and Miami increased 25.7%, according to the report.
Home prices in the U.S. are more than 41% higher than the previous peak recorded in 2006 during the housing boom that preceded the Great Recession, according to a national index.
Home prices hit a new peak in June, increasing at an annual rate of 18.6%, and 2.2% compared to May, according to the S&P CoreLogic Case-Shiller U.S. National Home Price Index published Tuesday. The index is 95% higher than it was in 2012 when the housing market bottomed out following the recession.
“June 2021 is the third consecutive month in which the growth rate of housing prices set a record,” S&P DJI Managing Director of Index Investment Strategy Craig Lazzara said in a statement. “The National Composite Index marked its thirteenth consecutive month of accelerating prices.”
A spike in lumber prices has compounded the state’s housing crisis, Georgia housing advocates said.
The price of lumber increased by 300% this spring compared with the same time last year, reports show. The building material reached an all-time high of $1,515 per thousand board feet on May 28.
The price of oriented strand board, which is most often used for sheathing, has increased by 400% since last spring.
Home prices reached record highs in April as the housing market continued to boom, with home prices in areas around cities climbing at the fastest rate on record.
Average home prices in metropolitan areas, measured by the S&P CoreLogic Case-Shiller National Home Price Index, rose 14.6% between April 2020 and April 2021, according to an analysis released Tuesday. The increase is the highest annual rate of housing price growth the index has measured, according to The Wall Street Journal.
The price of lumber has skyrocketed to a record high and four times its usual price at this time of year, causing a spike in homebuilding costs, The Wall Street Journal reported.
Lumber futures, or the market price for wood, reached a record $1,500.50 per thousand board feet on Friday, according to The Wall Street Journal. A board foot, the unit used to measure lumber, equals one square foot of wood with one inch of thickness.
“Absent a significant increase in mortgage rates or a Covid resurgence, it is hard to imagine what could cause lumber demand to drop and prices to moderate in the foreseeable future,” Eric Cremers, the CEO of major lumber producer PotlatchDeltic, told the WSJ.
The average home in California is expected to be valued at more than $1 million by 2030, according to research by RenoFi, an online company that specializes in home loans for renovation projects.
California has outpaced the national average for increasing home prices over the past decade, growing 78 percent and sending the average home value from $331,000 in 2010 to $598,000 today.