SEATTLE, Sept. 24, 2020 /PRNewswire/ -- (NASDAQ:
RDFN) -- Nationwide, 28.7% of Redfin.com users looked to move
to another metro area in July and August, according to the latest
migration report from Redfin (www.redfin.com), the
technology-powered real estate brokerage. That is up from 27.4% in
the second quarter and the highest share since Redfin started
tracking migration in 2017. The analysis is based on a sample of
more than two million Redfin.com users who searched for homes
across 87 metro areas so far in the third quarter of 2020.
The national housing market is booming as the coronavirus
pandemic changes what people look for in a home, such as more space
for work and family life. Those are also reasons why people are
continuing to leave expensive coastal areas like New York, San
Francisco and Los Angeles
for places like Sacramento and
Austin, where homes tend to be
more affordable and more spacious.
"People who could barely afford to rent a one- or two-bedroom
apartment in New York or
San Francisco are finding that
with their newly remote job, they can buy a nice-sized house in the
most desirable part of a place like Sacramento, Tampa or Las
Vegas," said Redfin chief economist Daryl Fairweather. "And their big, coastal city
salaries allow them to outbid local homebuyers in bidding wars,
which is starting to drive up home prices in those areas. The trend
is likely to continue as remote work becomes permanent for more
companies."
About half of all Redfin.com home searches in Sacramento, Tampa and Las
Vegas were from out-of-towners. The median Sacramento home price was up 11.4% year over
year to $468,000 in August, in line
with the 11% national increase, the biggest year-over-year price
increase in six years. Prices were up 12.8% to $267,000 in Tampa, and 7.8% to $310,000 in Las
Vegas.
Sacramento, Austin and Phoenix are the most popular
destinations
Sacramento is
the most popular destination for homebuyers looking to move to a
different metro area, with more than half of Redfin.com users
searching from another area and the biggest net inflow of
Redfin.com users in July and August. A net inflow means more people
are looking to move in than leave, while a net outflow means more
people are looking to leave than move in.
Austin has moved into second
place in terms of net inflow. Although Austin is typically on the top 10 list of most
popular destinations, this is the first time it has broken into the
top three since Redfin began tracking migration. Sacramento and Austin—like Phoenix, Las
Vegas and Atlanta, which
round out the top five—are affordable relative to coastal areas,
with median home prices under $475,000 in August, compared with $1.5 million in San
Francisco and $710,000 in
Los Angeles. They're all also
inland areas with warm weather.
"I've seen more and more people moving to Austin from California, New
York, Seattle and
Chicago, especially since the
pandemic began," said local Redfin agent April Miller. "The influx of people coming from
other areas has contributed to an uptick in bidding wars, and most
listings with multiple offers go to out-of-town buyers. People are
moving in for more affordable homes and lower taxes, and many of
them also mention new jobs and a desire to be closer to
family."
Top 10 Metros by Net
Inflow of Users and Their Top Origins
|
Rank
|
Metro*
|
Net
Inflow†
|
Net Inflow
LY
|
Portion of
Searches
from Users
Outside the
Metro, July
and August
2020
|
Portion of
Searches
from Users
Outside the
Metro, July
and August
2019
|
Top Origin
|
Top Out-of-
State Origin
|
1
|
Sacramento,
CA
|
10,764
|
6,261
|
50.5%
|
44.1%
|
San Francisco,
CA
|
Reno, NV
|
2
|
Austin, TX
|
7,040
|
4,077
|
37.8%
|
32.5%
|
San Francisco,
CA
|
San Francisco,
CA
|
3
|
Phoenix,
AZ
|
7,039
|
5,409
|
34.4%
|
32.4%
|
Los Angeles,
CA
|
Los Angeles,
CA
|
4
|
Las Vegas,
NV
|
6,860
|
5,042
|
48.6%
|
45.3%
|
Los Angeles,
CA
|
Los Angeles,
CA
|
5
|
Atlanta,
GA
|
5,975
|
4,894
|
25.8%
|
26.5%
|
New York,
NY
|
New York,
NY
|
6
|
Dallas, TX
|
5,250
|
2,941
|
29.1%
|
23.8%
|
Los Angeles,
CA
|
Los Angeles,
CA
|
7
|
Tampa, FL
|
4,125
|
2,815
|
55.4%
|
53.7%
|
Orlando,
FL
|
New York,
NY
|
8
|
Nashville,
TN
|
3,890
|
1,870
|
36.8%
|
29.3%
|
New York,
NY
|
New York,
NY
|
9
|
Miami, FL
|
3,398
|
2,227
|
26.1%
|
25.0%
|
New York,
NY
|
New York,
NY
|
10
|
Charlotte,
NC
|
3,361
|
2,450
|
39.6%
|
40.2%
|
New York,
NY
|
New York,
NY
|
*Combined statistical
areas with at least 500 users in Q3 2020
†Negative values
indicate a net outflow; among the two million users sampled for
this analysis only
|
People are looking to move away from New York, San
Francisco and Los
Angeles
New York,
San Francisco, Los Angeles, Washington, D.C. and Chicago had the biggest net outflows in July
and August, as they did in the second quarter. Expensive coastal
areas typically top the list of places Redfin.com users are looking
to leave.
"People are leaving New York
City because they want bigger, better homes for the same
price, and they can get them outside the city," said local Redfin
agent Ken Wile. "Many people who
were living in relatively small $1
million or $2 million
apartments no longer need to live close to their office because
they're working remotely, and now they want more space and a
separate, quiet space for Zoom calls. Plus, they want to take
advantage of low mortgage rates."
The portion of Redfin.com users in New
York looking to move away has declined since last year, but
that's likely because a lot of New
Yorkers searching for homes elsewhere have already left the
metro, so their search origins reflect their current location.
In San Francisco, 24.2% of
local Redfin.com users searched for a home in a different metro
area in July and August, up from 21% during the same time period
last year. The share of Redfin.com users looking to leave
Los Angeles, Washington, D.C. and Chicago has also increased since last
year.
Top 10 Metros by Net
Outflow of Users and Their Top Destinations
|
Rank
|
Metro*
|
Net
Outflow†
|
Net Outflow
LY
|
Portion of
Local Users
Searching
Elsewhere,
July and
August 2020
|
Portion of
Local Users
Searching
Elsewhere,
July and
August 2019
|
Top
Destination
|
Top Out-of-
State
Destination
|
1
|
New York,
NY
|
40,030
|
29,757
|
35.3%
|
39.7%
|
Boston, MA
|
Boston, MA
|
2
|
San Francisco,
CA
|
36,436
|
23,515
|
24.2%
|
21.0%
|
Sacramento,
CA
|
Seattle,
WA
|
3
|
Los Angeles,
CA
|
18,949
|
14,257
|
16.9%
|
16.1%
|
San Diego,
CA
|
Las Vegas,
NV
|
4
|
Washington,
DC
|
12,458
|
7,517
|
13.6%
|
11.8%
|
Salisbury,
MD
|
Salisbury,
MD
|
5
|
Chicago,
IL
|
5,505
|
3,988
|
11.9%
|
10.5%
|
South Bend,
IN
|
South Bend,
IN
|
6
|
Denver, CO
|
5,308
|
2,784
|
26.9%
|
23.4%
|
Seattle,
WA
|
Seattle,
WA
|
7
|
Seattle,
WA
|
4,810
|
1,387
|
14.1%
|
11.4%
|
Bellingham,
WA
|
Los Angeles,
CA
|
8
|
Milwaukee,
WI
|
2,068
|
981
|
37.3%
|
39.7%
|
Chicago,
IL
|
Chicago,
IL
|
9
|
Indianapolis,
IN
|
1,412
|
317
|
36.6%
|
29.3%
|
Chicago,
IL
|
Chicago,
IL
|
10
|
Rockford,
IL
|
888
|
345
|
87.4%
|
-
|
Chicago,
IL
|
Madison,
WI
|
*Combined statistical
areas with at least 500 users in Q3 2020
†Among the two
million users sampled for this analysis only
|
To read the full report and methodology, please visit:
https://www.redfin.com/blog/july-august-2020-housing-migration-trends
About Redfin
Redfin (www.redfin.com) is a
technology-powered residential real estate company, redefining real
estate in the consumer's favor in a commission-driven industry. We
do this by integrating every step of the home buying and selling
process and pairing our own agents with our own technology,
creating a service that is faster, better and costs less. We offer
brokerage, iBuying, mortgage, and title services, and we also run
the country's #1 real estate brokerage search site, offering a host
of online tools to consumers, including the Redfin Estimate. We
represent people buying and selling homes in over 90 markets in
the United States and Canada. Since our launch in 2006, we have
saved our customers over $800 million
and we've helped them buy or sell more than 235,000 homes worth
more than $115 billion.
For more information or to contact a local Redfin real estate
agent, visit www.redfin.com. To learn about housing market trends
and download data, visit the Redfin Data Center. To be added to
Redfin's press release distribution list, email press@redfin.com.
To view Redfin's press center, click here.
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SOURCE Redfin