Some aspects of life amid the pandemic have returned to normal. Others have not — like the populations of many major metropolitan areas.
The shift toward remote work has allowed many people to relocate for reasons other than a job — maybe to somewhere less crowded, less expensive or more beautiful.
Whatever their reasons, remote workers have been part of the big spike in home prices in many places, according to a new analysis by real estate technology company Redfin.
Redfin looked at typical household incomes for people who took out a mortgage in 2021 compared with 2019, alongside median home price growth, to figure out where remote workers have driven up prices the most.
Here are the metros where remote work is said to have spurred the highest growth in median home prices.
1. Boise, Idaho
Median home-price growth: 53%
Median homebuyer income growth: 24.1%
Two years ago, Boise was considered one of “10 Best U.S. Cities for First-Time Homebuyers.” That doesn’t seem to be the case anymore.
2. Austin, Texas
Median home-price growth: 48%
Median homebuyer income growth: 19.1%
Austin is the second-most inflated housing market thanks to remote workers, but there are signs it’s begun cooling off. Last month, we noted it is one of “10 Cities With the Biggest Spike in Home Listings.”
3. Cape Coral, Florida
Median home-price growth: 48%
Median homebuyer income growth: 18.5%
Redfin’s analysis suggests many remote workers are leaving expensive coastal cities, but not everybody wants to give up their water views. However, those considering this city on Florida’s Gulf Coast might want to wait a bit — it’s near the top of the list of “10 Housing Markets That Are Most at Risk of a Downturn.”
Other cities
Several other metro areas have seen home prices jump by more than a third throughout the pandemic, according to Redfin. Here are the other metros in the top 10, along with the median home price growth rate from the end of 2019 to the end of 2021:
- Phoenix, Arizona: 48%
- North Port, Florida: 47%
- Salt Lake City, Utah: 41%
- Tacoma, Washington: 39%
- Miami, Florida: 38%
- Stockton, California: 34%
- West Palm Beach, Florida: 33%
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