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Nashville and Raleigh Ranked Most Popular Among Relocating Renters

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Renters on Zillow seeking to move long distances tend to have higher incomes than those moving locally, according to Zillow analysis

SEATTLE, Oct. 27, 2016 /PRNewswire/ -- Among large cities, Nashville, Tenn. renters are most likely to be moving there from another city, and San Jose, Calif. renters are most likely to be planning to leave, according to a new Zillow® analysis.  

Zillow used data from Renter Profiles filled out by renters as they prepared to move to determine which cities are attracting outsidersi.  

Affordable cities like Nashville, Raleigh and Austin, which have strong economies and vibrant cultures are most attractive to renters from other parts of the country, while tech markets like San Francisco and San Jose have a high-churn rate with people frequently looking to move in and out. Markets with a higher percentage of renters looking to move out include Pittsburgh, Baltimore and Virginia Beach, and often are characterized by slower job growth and a higher than average population of students or military families.

As a general rule, markets attracting people from elsewhere in the country will experience rising rents, while markets that have a higher percentage of renters looking to leave show slower rent growth. 

"An influx of people moving to new cities is among the drivers affecting demand and therefore affordability in many of today's housing markets," said Zillow Chief Economist Dr. Svenja Gudell. "Rising rents become even more pronounced in booming markets like Nashville, Portland and Denver, not only because so many people want to move in, but also because so few people want to move away.  There aren't enough rental homes to go around and the rents have nowhere to go but up."

The average renter spends 10.4 weeks search for a home, according to the Zillow Group Report on Consumer Housing Trendsii. Generally speaking, the higher a renter's income, the faster they tend to find a home. Renters earning over $75,000 secure a place in fewer than 10 weeks on average, while those earning under $25,000 need nearly 12 weeks to find a new rental.

Households willing to undertake long-distance moves –– tend to have higher incomes households moving within a metro. The income gap between newcomers looking to move in and current renters is largest in San Francisco ($23,000), San Jose ($20,600), Washington, DC ($19,200), Baltimore ($18,000), and New York ($18,000). The income gap was smallest in Nashville ($4,900), Providence ($6,000), Atlanta ($6,100), Salt Lake City ($7,500) and Orlando ($9,000).

In San Jose and San Francisco, where housing affordability has deteriorated to crisis levels, renters seeking to move away have smaller or equal incomes to those seeking a new rental within the region. Los Angeles, New York, Boston and Seattle are not far behind, with renters seeking to leave the region reporting only slightly higher incomes than renters seeking to move within the region.

Renters can use Zillow's Renter Profile to create a personal profile outlining their qualifications such as income, credit score, and employment references. Renters create the profile just once, and can share it quickly and easily with landlords and property managers.

Markets with the Largest

% of Renters Seeking to

Move In 

Ranking

% of Renters Seeking to Move In

Current Zillow

Rent Index

(ZRI)iii, in U.S.

Dollars

% Change in ZRI,

Year over Year

Nashville, TN

1

42.2%

$1,451

3.9%

Raleigh, NC

2

38.1%

$1,383

0.9%

San Jose, CA

3

34.0%

$3,508

3.4%

San Francisco, CA

4

30.9%

$3,399

3.5%

Denver, CO

5

29.8%

$2,008

3.3%

Portland, OR

6

29.0%

$1,784

7.0%

Austin, TX

7

28.9%

N/A

N/A

Salt Lake City, UT

8

27.2%

$1,477

3.6%

New Orleans, LA

9

27.1%

$1,385

-4.3%

Charlotte, NC

10

25.6%

$1,237

1.5%

Markets with the Largest % of Renters Seeking to Move Out

Ranking

% of Renters Seeking to Move Out

Current ZRI

% Change in ZRI, Year over Year

San Jose, CA

1

37.5%

$3,508

3.4%

New Orleans, LA

2

29.3%

$1,385

-4.3%

Hartford, CT

3

29.0%

$1,613

0.9%

San Francisco, CA

4

27.3%

$3,399

3.5%

Austin, TX

5

26.4%

N/A

N/A

Virginia Beach, VA

6

24.7%

N/A

N/A

Salt Lake City, UT

7

24.6%

$1,477

3.6%

Pittsburgh, PA

8

23.3%

$1,091

1.4%

Providence, RI

9

23.2%

$1,587

2.5%

Baltimore, MD

10

22.5%

$1,728

0.4%

Zillow

Zillow® is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ:Z and ZG), and headquartered in Seattle.

Zillow and Zestimate are registered trademarks of Zillow, Inc.

iThis analysis includes data from on-market renters during the first three quarters of 2016 in the 50 largest metro markets in the United States.
ii In order to gain a comprehensive understanding of the United States residential real estate market, Zillow Group employed independent market research firm Lieberman Research Worldwide® to conduct a nationally representative, online quantitative survey. The blinded, self-administered study was fielded between April 27 and May 12, 2016.
iii The Zillow Rent Index (ZRI) is the median Rent Zestimate® (estimated monthly rental price) for a given geographic area on a given day, and includes the value of all single-family residences, condominiums, cooperatives and apartments in Zillow's database, regardless of whether they are currently listed for rent. It is expressed in dollars.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/nashville-and-raleigh-ranked-most-popular-among-relocating-renters-300352349.html

SOURCE Zillow, Inc.

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