As a side note, I do a lot of reading and researching for my columns to make sure my information is to the point and accurate and to the best of my ability, as educational as possible for our readers. This is extremely important to me considering all the inaccurate and phony information that is spewed and blasted out and dumped onto the internet and in newspapers (but not Blank Slate Media Newspapers!).
I imagine many believe what they hear and read at face value is accurate and truthful and may not question the validity of the information. I had mentioned in a few columns ago that if you want to fact-check things that you read, see or hear, especially by our politicians, go to snoops.com and voila, the truth can be had! Nothing is perfect in the real world, but transparency and accuracy for the most part can be ascertained with some careful and “Sherlock Holmes” type investigation.
Now let’s get into this week’s column. The millennial group has been leaving our area in droves for a number of years, as I have previously explained, due to the high cost of purchasing homes, taxes and not having the necessary large down payment required as well as a lower than normal inventory of affordable homes, condos, coops and homeowner associations. Do you know where they are moving? Obviously, some of you know where your kids are relocating and the fact that you may only see them or your grandchildren once a year or much less frequently compared to when they were here on Long Island.
I have heard from many older homeowners who truly wish they could still be around their children and grandchildren, which has been making them, ponder and consider moving closer to them in the near future. For those who could afford to stay, that represents a small percentage of the total, considering that many more families and individuals are leaving New York state than are coming to live here. The top five cities that seem to be attracting people, not only from New York state but other states are:
1.) Salt Lake City, Utah and its surrounding communities is the top place for many, which offers high employment rates (less than 3 percent unemployment) and magnificent surroundings. It’s a superb place to live as well as invest, especially for those in their 20s and 30s. The median home price for the second quarter of 2019 was $255,000-$663,125. But just two years ago in June 2017 they ranged from $190,000 in Salt Lake City to $470,000 in South Jordan and Holladay (up 21 percent). So those who moved out there gained more appreciation while being able to get into the housing market at a reasonable cost. However, there are four more states/cities which have gained a lot of traction of the last five to ten years.
2.) Seattle, Wash. is the go-to place for the millennial group, which makes up a sizable percentage of the population. Although prices have cooled a bit since 2018, prices have increased 8 percent for homes less than $380,000, obviously due to the greater demand in that price point. The most expensive homes of $760,000 and higher still increased 2 percent. The middle tier saw a 4.5 percent increase and prices ranged from $355,000-655,000 in Pierce, Snohomish and King Counties.
3.) Austin, Texas is the third most popular destination and has an above-normal job growth and is the second top city in the country for the number of jobs that have become available. Dell, Apple and Google are some of the major players attracting new talent and Austin is now called “Silicon Hills. Lastly, environmental sustainability is another factor by which millennials, who make “green practices” as a dominant and important variable in their mindset in relocating to Austin.” The median home price was $407,400 in May, up 5.8 percent year over year, according to the latest monthly report from the Austin Board of Realtors, which was published on June 20.
4.) Charlotte, N.C. is the fourth most popular destination to relocate to and has seen one of the largest increases in populations from 2016-2017 (No. 7 per the U.S. Census Bureau), causing prices to increase 9.5 percent over the last year and the prediction is that they will continue to grow at 6.1 percent through 2020 (per the Zillow research team) Supply is way below normal at 3.6 months in January 2019. Normal balanced supply is 5-6 months. And although inventory has increased slightly and sales have decreased slightly, prices are still up due to the demand for housing. Charlotte is a major banking and financial hub, second to New York City, offering a slew of higher paying jobs, allowing many to purchase their first homes. Seven Fortune 500 companies are headquartered within the metro area, including Bank of America, Lowe’s and Honeywell. Microsoft’s East Coast headquarters are there too.
5.) The last great city people are gravitating to is Dallas, Texas. Extremely attractive job opportunities, job growth of 3.9 percent as well as reasonable home prices. Real estate news site Point2 Homes reports that from December 2013 to December 2018, Dallas’s median home price increased from $229,900 to $285,000, a 24 percent jump that equates to an additional cost of $55,100. However, compared to other surrounding towns studied, it had the lowest price appreciation, making it much easier for many to purchase a home.
As you can see the typical price ranges (and real estate taxes, too) in all the cities are considerably lower and much more affordable than our local Long Island towns, which makes it a “no brainer” for many moving out of New York. In order to compete with those other cities, and see improvements in our dwindling millennial populations, (and others), New York state and its politicians really need to think outside the box. Otherwise the writing is on the wall and the “brain drain” and future monies lost will continue to be a detriment to all our communities.
Philip A. Raices is the owner/Broker of Turn Key Real Estate at 3 Grace Ave Suite 180 in Great Neck. He has earned designations as a Graduate of the Realtor Institute (G.R.I.) and also as a Certified International Property Specialist (C.I.P.S.). He will provide you with “free” regular updates of sold and new homes in your town via the Multiple Listing Service of Long Island (MLSLI)or go to WWW.Li-RealEstate.Com as well as a “free” value analysis of what your home might sell for in today’s market without any “strings” attached. He can also provide a copy of “Unlocking the Secrets of Real Estate’s New Market Reality or Our Seller’s or Buyer’s Guides for “Things to Consider when Selling or Purchasing your Home. Just email or snail mail(regular mail) him with your request with your name, email and cell number and he will send it out ASAP. For a consultation, he can be reached by Cell: (516) 647-4289 or by email: Phil@TurnKeyRealEstate.Com to answer any of your questions or concerns.