Out-of-town homebuyers moving to Austin, Texas, are spending an average of $22,500 more on homes, according to a new report.
Homebuyers moving to the area paid an overage of 7.8% above the asking price for their homes during the pandemic. Locals paid an average of 3.7% above the asking price, according to real estate brokerage Redfin.
Overall, out-of-towners in Austin are buying homes to the tune of $470,000, versus $447,500 for locals, according to the report.
However, those out-of-town homebuyers were already seeking more expensive homes. The typical list price for those buyers is $439,900, compared with $425,000 for local buyers, according to Redfin.
Out-of-towners also have higher down payments, putting down $111,500 versus $83,725 for locals, according to the report.
According to the brokerage, most out-of-towners are moving away from higher-priced destinations and even though the prices of homes in Austin have increased 43% over the last year, they are still "significantly more affordable" than in other areas of the country.
For instance, a majority of out-of-towners are coming from San Francisco, where the median sale price on a home is about $1.59 million.
"People moving into Austin from out of town tend to come with a lot of cash from selling homes in expensive West Coast cities – especially the Bay Area," said Andrew Vallejo, an Austin Redfin agent.
Vallejo said out-of-state buyers also have a lot more buying power over locals because "those of them who can work remotely often come with high West Coast salaries."
Ultimately, this gives them the ability to hunt for bigger and more expensive homes.