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Moving across state lines comes with a plethora of challenges and changes—so much so that the costly process of laying down permanent roots in a new locale often takes a back seat to the many other hurdles involved in making such a big transition.
Many transplants choose to ease themselves into their new neighborhood by renting and thereby giving themselves a chance to postpone the inevitable costs involved in investing in a new home.
But a handful of budget-friendly metros are bucking that trend, offering interstate movers a much easier—and more affordable—opportunity to take their first steps on the local property ladder.
Nationally, less than 28% of interstate movers close on a home in their first year after relocation, meaning that nearly three-quarters of recent arrivals opt to rent, according to new research from the National Association of Realtors®.
International movers are even more reluctant to put down roots in a new place right away, unlike people who move within the same county, who are often the most eager to settle in a home of their own.
The share of interstate movers purchasing homes within the first year peaked at 33% at the height of the pandemic, when borrowing costs dropped to record lows and the rise of remote work allowed many Americans to relocate.
By 2024, however, the percentage of homebuyers among recent interstate transplants fell back down to 27.5%—same as in 2019—because of climbing mortgage rates and intensifying affordability headwinds.
However, NAR data analysis shows that five metros—four in the South and one in the Midwest—stand out for elevated homeownership rates among out-of-state newcomers.
Where movers are opting to buy vs. rent
Daphne, AL, Naples, FL, Ocala, FL, Hickory, NC, and Rockford, IL, lead the nation in the share of interstate movers who are buying instead of renting.
Nadia Evangelou, senior economist and director of real estate research at NAR, writes that these metros have a few key common denominators: They are all relatively affordable, have plentiful for-sale inventory, and enjoy strong in-migration.
For transplants coming from pricier markets, entering the housing market in these budget-friendly locales is much more attainable.
“Many movers are likely relocating with long-term plans in mind, including retirement, remote work, or family stability, making ownership the preferred option,” says Realtor.com® senior economic research analyst Hannah Jones.
“Together, affordability relative to origin markets and strong quality-of-life factors encourage buyers to put down roots right away.”
Evangelou points out that senior movers headed to some of those popular retirement destinations often relocate with equity from a previous home sale, making it easier for them to invest in their next property without having to wait.
“These are markets where movers don’t wait to ‘see how it goes’, they already see the move as permanent,” the economist tells Realtor.com.
South welcomes new homeowners
Sitting along the Gulf Coast, Daphne has the highest share of interstate movers owning homes within the first year, at 76.3%.
Jones notes that despite its coastal location, the metro remains more affordable than many similar markets thanks to relatively low home prices and overall cost of living.
In December, the median listing price in Daphne was $499,000 and the number of for-sale properties was up 1.8% compared with a year ago, according to the latest monthly housing market trends report from Realtor.com.
“Buyers often get access to waterfront amenities and a high quality of life without the steep premiums seen in larger coastal metros,” says Jones.
“For interstate movers coming from higher-cost areas, buying immediately can feel like a value opportunity rather than a stretch.”
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Naples came in a close second, with the share of owners among out-of-state movers reaching 76.2%, according to NAR.
The typical home in the metro, which also includes Marco Island, cost $729,725 last month.
While not exactly a bargain, for a retiree coming from Boston or New York City, it’s still thousands of dollars cheaper than buying back home.
“Many interstate movers bring significant home equity or cash, making it easier to purchase right away without renting first,” points out Jones.
“Lifestyle appeal, favorable tax conditions, and long-term ownership appeal also encourage buyers to commit immediately.”
Ocala, located in the Sunshine State’s panhandle, is the third-most welcoming to interstate movers, 73% of whom become homeowners there in the first 12 months.
The typical home in Ocala comes with an affordable price tag of just $299,000, which is $100,000 below the national median.
Plus, active listings in the metro are up more than 26% year over year, offering newcomers plenty of options.
Another Southern market, Hickory, has the fourth-largest share of homeowners among new out-of-state transplants, at 63.6%.
As of December, the inland metro’s median listing price stood at $359,000.
“Coastal metros often attract people relocating for retirement, while inland metros tend to draw job-driven movers and offer relatively better affordability,” says Evangelou.
“In both cases, the common thread is that buyers see these markets as long-term destinations where they can put down roots.”
Midwestern market is a movers’ magnet
The sole Midwestern entry, Rockford boasts a homeownership rate of 62.6% among new arrivals, which is not surprising given the local median list price of just $246,500, the lowest among the five metros highlighted by NAR.
“People are able to purchase here because of the affordability,” Milena Cojkic, a real estate agent with Keller Williams Realty Signature in Rockford, tells Realtor.com, adding that she has worked with buyers from as far away as California, Texas, and even London.
Located just 90 miles from the much more expensive Chicago, Rockford has seen consistently high buyer demand, earning it the title of the Realtor.com Hottest Market for January 2025.
Last summer, it also made it onto the Wall Street Journal/Realtor.com® Housing Market Ranking.
Cojkic confirms that most of her clients are interested in purchasing homes in Rockford rather than renting after learning that the city is only a short drive from Chicago and has a vibrant dining and shopping scene.
However, newcomers rushing to purchase a home, bypassing the rental stage entirely, can have unintended consequences.
“When movers buy rather than renting first, demand shows up faster in the for-sale market,” says Evangelou.
“That can tighten inventory and push up prices, especially in smaller metros with limited supply.”
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