Florida still most desired destination for out-of-state buyers

A new LendingTree study finds that Florida emerged as the most popular destination among out-of-state homebuyers in 2024.

According to the report, 13.7% of mortgage purchase inquiries came from consumers looking to buy property outside of their current state.

Florida was the top choice for out-of-state buyers from nine states, including populous Texas, which followed as the second-most sought after state, while Washington ranked third.

“These three states have no state personal income tax,” Matt Schulz, LendingTree chief consumer finance analyst, stated in the report. “That’s a big deal. They’re also relatively large states by area that feature a mix of big urban cities and rural areas. That sort of diversity can be appealing.”

South Carolina, while not the most desired state by volume, attracted the highest relative interest. For every 100 South Carolinians looking to move out, 255 out-of-staters were looking to move in, a 2.55 ratio. Maine (2.09) and Delaware (2.08) followed closely.

High-cost states not attracting out-of-state buyers

At the other end of the spectrum, high-cost states like California, New York, and Massachusetts saw the least interest from out-of-state shoppers.

California had a particularly stark imbalance: for every 100 Californians searching for homes elsewhere, only 30 non-residents searched for homes in the state.

“These are high-income, high-cost-of-living areas,” Schulz said. “They’re not going to be where people search for a relatively inexpensive vacation home or investment property. The opposite is more likely: Residents of these states will look to warmer, less expensive areas, such as Florida and Texas, for buying opportunities.”

In fact, California’s average monthly mortgage payment stands at $3,399 — more than $1,000 above the national average of $2,317 — placing it second-highest in the nation. Mortgage payments consume nearly 34% of household income in California, also among the highest ratios by state.

Shoppers in Alaska (28.5%), Hawaii (27.9%), and Rhode Island (24.1%) were the most likely to search out of state. Texas, Michigan, and Wisconsin residents were the least likely to consider leaving, with fewer than 10% of home shoppers exploring out-of-state options.

Generational splits

Baby boomers (ages 60–78) led all age groups in searching out of state, with 24.4% looking beyond their current residence. Gen X followed at 15.0%, while millennials and Gen Z trailed at 11.9% and 10.3%, respectively.

Among those looking to buy out of state, the vast majority (85.7%) intended to live in the home. However, 10.3% were pursuing second homes, and 4.0% were interested in investment properties.

“When you have a big influx of interest from out-of-state buyers, this demand can send house prices through the roof,” Schulz said. “That’s good news for people who already have a home and want to build equity. It’s not as great for those getting into the market and looking for deals. Rising prices and high interest rates have pushed homeownership out of reach for many. A tidal wave of out-of-staters coming in and looking to buy doesn’t make that any easier.”