Out-of-state homebuyers head south; Florida claims top destination for 14 states

Aly J. Yale
The Mortgage Reports contributor

Seeking sunshine

American homebuyers are flocking toward warmer climates. According to a new study, U.S. residents are increasingly leaving colder states, opting instead, for buying homes in places like Florida, Texas and California.

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Top out-of-state spots

The recent State Migration Study from LendingTree shows that most homebuyers looking to move out of state are heading south. A whopping 12.4 percent of all people seeking out-of-state mortgage loans this year were for Florida.

Florida was the most popular out-of-state destination from homebuyers in Michigan, Wisconsin, Illinois, Indiana, Ohio, Kentucky, Tennessee, Alabama, Georgia, New York, New Jersey, Connecticut, Vermont and Maine.

“Most people looking to move out of state don’t want to go far,” said Tendayi Kapfidze, chief economist for LendingTree. “More than half of the most popular new destination states border the current state. But if they are looking to move cross-country, chances are it’s to Florida.”

Close behind was Texas. The Lone Star State was the No. 1. choice for out-of-state buyers in California, Arizona, Colorado, Oklahoma, Arkansas and Louisiana.

California, Washington, Arizona, Massachusetts and North Carolina rounded out the top five (AZ, MA and NC tied at No. 5). In total, 12.1 percent of homebuyers were looking to move out of state this year.

This state has the highest home maintenance costs

Staying put

Not all homebuyers are looking to pack up and move out, though. According to the study, Texans are largely staying within the state. More than 93 percent of mortgage requests from Texans this year were for purchases within the Lone Star State.

Michiganders are in the same frame of mind, with 91 percent looking to buy within state lines.

Out of state moves rise for the first time in decades

Alaska, however, sits on the opposite side of the spectrum. The state claims the most residents looking to move away. Just 75 percent of homebuyers were purchasing in state lines this year.

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