Is domestic migration really affecting the housing market in the way we think it should? In episode 12 of RiskWire: On the House, Chief Economist Eric Fox and Sr. Research Economist, Reena Agrawal tackle this question by looking at the data. They explore different states facing large influxes of migration and emigration and compare those numbers to their respective home prices. They also speak on other factors affecting the housing market, including housing supply constraints, new construction, and more.
Here are a few key takeaways from the episode:
- Domestic migration alone will not determine home price growth. In states such as California, that saw large domestic outflows in the early 2020’s, prices still grew, ultimately supporting the sentiment that domestic migration by itself does not have an effect.
- There are many more factors in play aside from simply domestic migration. International migration, natural population growth, and new construction in each state are all critical in determining the effects on home prices and the general housing market.
- Housing supply matters immensely. States that are building an abundance of new homes are better prepared for an influx in population growth, which helps keep prices from rising very high, very fast.
Looking to learn more about migration and its impact on the housing market? Watch episode 12 of RiskWire: On the House, today: Webcast & Interviews – RiskWire, powered by Veros
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