Richest American cities no one wants to move to
Many Americans still are holding off on buying homes in some of the country’s most expensive cities. While home prices fell 23% on average in the largest cities since the housing crisis began, for many home buyers the drop was not enough.
Based on a new report released by Trulia, 24/7 Wall St. identified the metropolitan areas to which people least want to move.
MORE RELATED TO THIS STORY
—The happiest and unhappiest cities to work in
—Most expensive cities for business travel
—22-year-old buys $88M NYC apartment
Trulia ranked the 100 largest metropolitan areas by their Metro Movers ratio, which compares the number of online searches of local residents looking to buy elsewhere with the number of out-of-town homebuyers looking for real estate in the area.
According to the report, a ratio of two means that there are twice as many home searches by people looking to leave the area as to move in. All of the cities no one wants to move to have a ratio higher than two.
The cities that attract few buyers experienced modest home price declines since the recession began, especially relative to their high home value. As a result, home prices in these areas are forecast to decline further, and homebuyers are waiting until they do.
All of the cities no one wants to move to have among the most expensive homes in the country. Newark and Bethesda, two cities with twice as many people looking to leave as looking to move in, have among the top 10 highest median home values in the country. Home prices in these cities declined at just the national average, and next year, they are projected to decline more.
Here are the five richest metropolitan areas people least want to move to:
5. Bethesda, Md.
MSA: Bethesda-Rockville-Frederick, Md.
Metro movers ratio: 2.25
Median home price: $700,000
Home value decline from peak: -28.9%
Forecast change in home price through 3Q 2012: -5.6%
|Wealthy Bethesda is expected to see a further decrease in home prices.
Photo: G. Edward Johnson / Wikimedia Commons
The suburbs surrounding Washington, D.C., are some of the most affluent in the country. Bethesda is no exception. According to Zillow, median home prices in the region are nearly $700,000, making it one of the most expensive real estate markets in the U.S. During the recession, home values declined nearly 29%, which is quite a drop in value but not nearly as much as many other large cities. Home prices in the Bethesda region are projected to drop another 5.6% over the next year.
4. Philadelphia, Penn.
Metro movers ratio: 2.4
Median home price: $265,000
Home value decline from peak: -12.9%
Forecast change in home price through 3Q 2012: -1.7%
|Home prices have remained steady in Philadelphia.
Photo: Dan Smith / Wikimedia Commons
Median home prices in the Philadelphia region are the 27th highest in the country at $265,000. Additionally, home prices did not fall very much from their peak — at least relative to the rest of the country. This may be preventing the city from attracting enough new residents to keep its population numbers up.