Flash forward to today, and the big “winners” of the work-from-home reshuffle — metros that drew hordes of footloose workers and disaffected coastal dwellers — have turned into losers. Fewer people are moving to so-called Zoomtowns. Home listings are piling up on the market. Prices are dropping. The anxiety has shifted from buyers trying to elbow their way in to sellers just trying to offload their properties. A new report by the real estate analytics firm Parcl Labs, shared exclusively with Business Insider, shows that home sellers in the lower half of the US, also known as the Sun Belt, are the most desperate in the country…
Housing demand surged early in the pandemic — the country’s homeowning ranks swelled by a whopping 2.2 million people between the first quarter of 2020 and the same point in 2022, an analysis by the Harvard Joint Center for Housing Studies shows. But for all the talk of upheaval, movers more or less stuck to those pre-pandemic flight patterns — just at warp speed. People kept migrating from big-city centers to the suburbs and from the North to the South. Sun Belt states, including Florida, Texas, Arizona, and North Carolina, experienced the largest population gains from domestic migration between mid-2020 and mid-2021, per a Harvard analysis of Census data. The Dallas metro, for example, gained around 63,000 people from other parts of the country that year, a huge jump from just 19,000 the year prior. Phoenix, Tampa, Austin, and Charlotte recorded similar increases. Expensive states with large urban areas, including California, New York, Illinois, and Massachusetts, saw the biggest losses…
The North-to-South movement still holds, but the North is losing fewer people, and the South isn’t gaining like it once was. The most recent numbers, for the yearlong period ending in mid-2024, show net domestic migration to the South was down almost 38% compared to the first year of the pandemic. Domestic migration to the Midwest, on the other hand, is up about 60% in that same period, though it’s still negative in absolute terms. The Northeast’s net loss was down to 192,000 in the latest tally, compared to a loss of 390,000 at the height of the pandemic. With the migration tide receding, sellers in once-hot metros are getting real. In Denver, Charlotte, Jacksonville, and a smattering of other Sun Belt markets, more than half of single-family homes for sale have seen a price cut, Parcl Labs data shows. In the Boston, Philadelphia, and Buffalo metros, the share of listings in that bucket drops to fewer than a third.
That’s just one metric. To gauge sellers’ desperation these days, Parcl Labs created what it calls the Motivated Sellers Index, which combines four factors: the number of price cuts on home listings, the time in between those cuts, the size of the price decreases, and the length of time homes are spending on the market. The higher the score, the greater the homeowners’ urgency to sell. The lower half of the US, with the exception of much of California, is awash in high scores, indicating sellers are ceding negotiating power to buyers. Same goes for much of the West. The Midwest and Northeast, on the other hand, registered some of the lowest scores in the nation: Sellers there are sitting pretty by comparison.