These Metros Give Commuters a Leg Up on the Real Estate Ladder—and Buck the Affordability Crisis.

Crossing state lines comes with a host of challenges and changes—so much so that the expensive process of putting down permanent roots in a new place often takes a back seat to the many other obstacles involved in making such a big transition.

Many movers choose to ease themselves into their new place by renting and in doing so give themselves the opportunity to defer the inevitable costs involved in investing in a new home.

But a handful of budget-friendly metros are bucking that trend, giving commuters an easy—and affordable—opportunity to take their first steps on the local ladder.

Nationally, less than 28% of county movers close on a home in their first year after moving, meaning nearly three-quarters of newcomers choose to rent, according to a new study from the National Association of Realtors®.

International movers are even more reluctant to put down roots in a new place quickly, unlike people moving within the same region, who are often more eager to settle in their home.

The share of out-of-state movers buying homes within the first year reached 33% at the height of the pandemic, when borrowing costs dropped to record lows and a long job boom allowed more Americans to move.

However, in 2024, the percentage of home buyers among the latest transplants between regions has dropped to 27.5% – as in 2019 – due to rising loan rates and strengthening purchasing power.

However, an analysis of NAR data shows that five metros—four in the South and one in the Midwest—stand out for the highest rates of home ownership among out-of-state newcomers.

When movers choose to buy versus rent

Daphne, AL, Naples, FL, Ocala, FL, Hickory, NC, and Rockford, IL, lead the nation in the share of regional movers who buy instead of rent.

Nadia Evangelousenior economist and director of real estate research at NAR, writes that these metros have several key characteristics in common: They are all very affordable, have lots of real estate, and enjoy immigration.

With transplants from high-priced markets, entering the housing market in these budget-friendly areas is much more attainable.

“Many movers may be moving with long-term plans in mind, including retirement, remote work, or family stability, making ownership the preferred option,” said Realtor.com® chief economic analyst. Hannah Jones. “Together, the affordability associated with original markets and strong quality-of-life factors encourage consumers to put down roots immediately.”

Evangelou points out that big movers to some of those popular retirement areas tend to move equity from previous home sales, making it easier for them to invest in their next property without waiting.

“These are markets where movers aren’t waiting to ‘see how it goes’, they already see the move as permanent,” the economist told Realtor.com.

The South welcomes new homeowners

Sitting along the Gulf Coast, Daphne has the highest share of first-year home movers, at 76.3%.

Jones notes that despite its coastal location, the metro remains more affordable than many similar markets due to lower home prices and the overall cost of living.

In December, the median listing price in Daphne was $499,000 and the number of properties for sale was up 1.8% from a year ago, according to the latest monthly real estate market report from Realtor.com.

“Consumers often have access to amenities and a high quality of life without the high costs seen in large coastal metros,” Jones said. “For regional movers from high-cost areas, buying fast may sound like a value opportunity rather than a stretch.”

Naples came in a close second, with the share of owners among out-of-state immigrants reaching 76.2%, according to the NAR.

The average home in the metro, which includes Marco Island, cost $729,725 last month. While not a bargain, for a retiree from Boston or New York City, it’s still thousands of dollars cheaper than buying at home.

“Many movers bring significant home equity or cash, making it easy to buy quickly without renting first,” Jones said. “Lifestyle appeal, favorable tax conditions, and long-term ownership appeal also encourage buyers to make a quick commitment.”

Ocala, located in the Sunshine State, is the third most popular among county movers, 73% of whom became homeowners there in the first 12 months.

The average home in Ocala comes in at an affordable price of just $299,000, which is $100,000 below the national average. Also, active listings in the metro have increased more than 26% year-over-year, giving newbies more options.

Another Southern market, Hickory, has the fourth-highest share of homeownership among new out-of-state transplants, at 63.6%.

As of December, the inland metro listing price stood at $359,000.

“Coastal cities tend to attract people who migrate to other areas for retirement, while inland cities tend to attract career-driven movers and offer better accessibility,” Evangelou said. “In both cases, the common thread is that buyers see these markets as long-term places where they can put down roots.”

The Midwestern market is a magnet for movers

The only Midwestern entry point, Rockford boasts a 62.6% homeownership rate among newcomers, which is not surprising given the median property price of just $246,500, the lowest among the five cities highlighted by NAR.

“People are able to buy here because it’s cheap,” Milena Cojkicreal estate agent with Keller Williams Realty Signature in Rockford, tells Realtor.com, adding that he has worked with buyers from as far away as California, Texas, and even London.

Located just 90 miles from expensive Chicago, Rockford has seen consistent high buyer demand, earning it the title of Realtor.com Hottest Market for January 2025. Last summer, it also entered the Wall Street Journal/Realtor.com® Housing Market Ranking.

Cojkic confirms that most of his clients are interested in buying homes in Rockford instead of renting after hearing that the city is only a short drive from Chicago and has a vibrant restaurant and shopping scene.

However, newcomers who rush to buy a home, completely skipping the rental stage, can have unintended consequences.

“When movers buy rather than rent first, the demand appears immediately in the real estate market,” Evangelou said. “That would tighten inventory and drive up prices, especially in smaller metros with limited supply.”