PORTLAND, Ore. (KOIN) – The bigger budgets of out-of-town residents moving to Portland could be contributing to the rising price of homes.
Redfin, a national real estate brokerage firm, released a report Thursday that says in the first half of 2022, people who moved to Portland from outside the city had budgets that were 18% higher to spend on a home than people who already lived in the city.
The analysis looked at 23 cities and found in 19 of them, out-of-towners had higher budgets.
Philadelphia was the city with the biggest difference between transplants and in-city residents, 39%. New York came next with the out-of-town budget 31% higher than the average local budget, then Atlanta at 30%, Dallas at 22% and Portland coming in fourth at 18%.
In Philadelphia, Redfin says newcomers had higher budgets because they were typically moving to the city from coastal job centers with high salaries and cash on hand from selling a high-value home.
The city became a destination for affluent out-of-town homebuyers early on in the pandemic, when remote work made it easier for people to move to more affordable areas while maintaining their salaries.
New York was the most common origin for out-of-towners moving to Philadelphia.
In Portland, in the first quarter of 2022, the most common origin for out-of-towners moving to the city was Seattle, followed by the San Francisco Bay Area and Los Angeles.
Redfin says the average maximum budget for out-of-towners is $929,563 and the median home sale price in the Portland metro area in June 2022 was $568,000. This is significantly lower than the median home price in Seattle in June, which was $816,100.
The median home price in Portland has increased about 21% since the start of the pandemic.