To see how this could play out, look at Las Vegas. Clark County, NV had the biggest migration in the U.S. county-to-county in tax-filing years 2019 to 2020. During this time, out-of-state buyers affected the housing market. Buyers from California were routinely putting in cash offers $30,000, $50,000 or more above list price, pricing out the locals.
This led locals to move outside of the city, or rent an apartment with roommates instead of buying. Many people stay in the metro area, but move outside of the city center. Some people leave the metro completely, however. When out-of-state buyers increase the prices of the housing market, locals often relocate to suburban or ex-urban areas. This happened in Nashville, too. The Business Journals found, for example, more people moved out of Davidson County, Tennessee, where Nashville sits than into Davidson: 15,468 moved to Davidson while 20,249 moved out in tax-filing years 2019 and 2020.