--- title: 10 Cities Where Rich Out-of-Towners Have Driven up Home Prices description: Thanks to an influx of rich remote workers, median incomes rose in cities like Boise, Austin, and Phoenix — and home prices spiked too. authors: - name: Sarah Hansen role: Senior Writer url: https://money.com/author/sarah-hansen/ bio: Sarah Hansen is a senior writer at Money covering all things personal finance. Previously, she covered economic policy and capital markets on the breaking news desk at Forbes. education: Northwestern University, New York University at_money_since: 2021 articles: 347 covers: - Housing - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes social: - https://www.linkedin.com/in/sarah-m-hansen/ former_staff: true published: '2022-08-05T16:59:50.000Z' modified: '2024-01-10T17:37:20.000Z' section: Housing tags: - News word_count: 458 canonical: https://money.com/cities-remote-workers-increase-home-prices/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Photo of people kayaking on a lake in Austin, Texas](https://img.money.com/2022/08/News-Cities-where-incomes-impact-home-prices.jpg?crop=0px%2C225px%2C2880px%2C1620px&quality=85) *Austin, Texas* Remote work has had a huge [impact on the housing market](https://money.com/reason-high-home-prices-remote-work/). That’s especially true for destinations that attracted wealthy out-of-towners relocating during the pandemic. Hot spots like Boise, Idaho, and Austin, Texas, saw home prices soar thanks partly to the influx of remote workers with high salaries, a new [analysis](https://www.redfin.com/news/homebuyer-incomes-increase-remote-work-2021/) from real estate brokerage Redfin finds. Between 2019 and 2021, the median homebuyer income in Boise rose 24% (to $98,000), while home prices spiked 53%. At the same time, the median homebuyer income in Austin rose 19% (to $137,000), and the median home price rose 48%. In a news release, Redfin Senior Economist Sheharyar Bokhari said remote work allowed high-earning white-collar workers to move to cheaper, more attractive cities and save cash. But for locals in these places, remote work can have the “opposite effect," Bokhari said, "as home prices skyrocket while their income stays mostly the same.” As out-of-towners flocked from expensive coastal cities to more affordable destinations in the Sun Belt and the West, they exacerbated existing shortages of homes and drove up competition, making it [more difficult for locals to buy](https://money.com/home-prices-out-of-town-buyers-locals/). A February report from Redfin found that the budget gap between out-of-towners and locals was approaching 30% in some of the most popular cities for transplants. ## Home price increases in 10 cities where incomes spiked Here are the top 10 cities where homebuyer income grew the most between 2019 and 2021, according to Redfin, along with the corresponding increase in median home prices during that same period. 1. Boise, Idaho: 53% 2. Austin, Texas: 48% 3. Cape Coral, Florida: 48% 4. North Port, Florida: 47% 5. West Palm Beach, Florida: 33% 6. Miami, Florida: 38% 7. Phoenix, Arizona: 48% 8. Stockton, California: 34% 9. Tacoma, Washington: 39% 10. Salt Lake City, Utah: 41% (Note: Redfin’s data only includes homebuyers who took out a mortgage to buy their new homes, not homebuyers who paid cash.) ## Housing market hot spots are cooling down The combination of high [mortgage rates](https://money.com/current-mortgage-rates/) and [elevated home prices](https://money.com/overvalued-housing-markets/) has led to a [cooldown in the red-hot housing market](https://money.com/house-list-prices-dropping/) in 2022 — especially in many cities that saw the biggest spikes over the last two years. A recent [report](https://www.realtor.com/news/trends/where-the-most-sellers-are-slashing-prices/) from Realtor.com named Boise, Austin and Phoenix among the top cities where the sellers are slashing prices. “Price cuts are hitting hardest in markets which have been on a hot streak during the pandemic," Realtor.com Senior Economist George Ratiu said in the blog post. “These are also markets which experienced a fast ramp-up in prices due to the inadequate supply of housing.” ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/cities-remote-workers-increase-home-prices/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Housing", "item": "https://money.com/housing/" }, { "@type": "ListItem", "position": 3, "name": "Home Prices", "item": "https://money.com/home-prices/" }, { "@type": "ListItem", "position": 4, "name": "10 Cities Where Rich Out-of-Towners Have Driven up Home Prices" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/cities-remote-workers-increase-home-prices/#webpage", "url": "https://money.com/cities-remote-workers-increase-home-prices/", "name": "10 Cities Where Rich Out-of-Towners Have Driven up Home Prices", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2022-08-05T16:59:50.000Z", "mainEntity": { "@id": "https://money.com/cities-remote-workers-increase-home-prices/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/cities-remote-workers-increase-home-prices/#breadcrumb" }, "dateModified": "2024-01-10T17:37:20.000Z" }, { "@type": "NewsArticle", "headline": "10 Cities Where Rich Out-of-Towners Have Driven up Home Prices", "articleSection": "Housing", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2022/08/News-Cities-where-incomes-impact-home-prices.jpg?crop=0px%2C225px%2C2880px%2C1620px&quality=85", "width": 1012, "height": 569, "caption": "News-Cities-where-incomes-impact-home-prices" } ], "author": [ { "@type": "Person", "name": "Sarah Hansen", "url": "https://money.com/author/sarah-hansen/", "@id": "https://money.com/author/sarah-hansen/#author", "description": "Sarah Hansen is a senior writer at Money covering all things personal finance. 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