San Diego and Portland, Maine are picking up in
popularity with out-of-town buyers, while movement into Miami,
Sacramento and Phoenix is slowing
(NASDAQ: RDFN) — The share of homebuyers looking to relocate
jumped in July as high mortgage rates and home prices motivated
Americans to move to more affordable areas, according to a new
report from Redfin (redfin.com), the technology-powered real estate
brokerage.
A record 33.7% of Redfin.com users nationwide looked to move
from one metro to another in July, up from 32.6% in the second
quarter and about 26% before the pandemic.
Migration within the U.S. intensified with the pandemic, as
remote work gave many Americans the freedom to move from one metro
area to another, often prioritizing factors like affordability and
sunny weather.
Even as the overall housing market has cooled this spring and
summer due to 5%-plus mortgage rates and economic woes, the share
of relocating buyers out of all buyers is at an all-time high.
That’s because high home prices and mortgage rates, combined with
permanent remote work, are motivating buyers to move from expensive
parts of the country to more affordable areas.
San Diego and Portland, ME became more popular with
out-of-town buyers, while migration into Miami and Phoenix
slowed
Miami was the most popular migration destination in July, as it
was in the first half of the year. But migration into the South
Florida metro is starting to slow, with fewer homebuyers looking to
move to Miami than a year earlier. Popularity is measured by net
inflow, or how many more Redfin.com users looked to move into an
area than leave.
Movement into a few other perennially popular destinations has
started to slow, too, even as the overall share of relocators hit a
record high. Sacramento was the second-most popular destination in
July, but there’s less movement into the California capital than a
year earlier.
And after many months as one of the three most popular
destinations, Phoenix fell to number 6 in July, with a sizable
decline in out-of-town homebuyers looking to move there. That’s
partly because Phoenix home prices rose so much during the
pandemic, increasing 20% year over year to $485,000 in June, well
above the national median of $428,000.
San Diego followed the opposite trajectory, catapulting to third
on the list of most popular destinations. That’s the highest
ranking it has reached since Redfin started tracking migration data
in 2017, and a jump from number 7 in the second quarter. Migration
into San Diego has more than doubled from a year ago, with Los
Angeles as the most common origin of homebuyers moving there, and
Seattle as the most common out-of-state origin. Even though San
Diego home prices are on par with Los Angeles and Seattle,
relocators are seeking out a slower pace of life.
“We’ve always had a lot of people from the Bay Area and Los
Angeles move to San Diego for a better work-life balance and a
beachside lifestyle, and it has picked up since remote work became
commonplace,” said San Diego Redfin agent Jodie Lee. “This year,
I’ve also seen quite a few remote workers move in from places like
Seattle and North Carolina because they like the sunny weather and
outdoor activities in this area. San Diego also has a big military
presence, and more service members are relocating here now that the
cooling market means they have a better chance of getting an offer
with a VA loan accepted.”
Portland, ME, is also becoming more popular with out-of-town
buyers, landing on Redfin’s top 10 list for the first time. It’s
especially popular with Bostonians, both those relocating and those
purchasing vacation homes.
Tampa, Las Vegas, North Port, FL, Cape Coral, FL and San
Antonio, TX, perennially popular with out-of-town buyers, were also
on the top 10 list in July. The flow of people moving to all but
one of those places was up from a year earlier (San Antonio is the
exception).
Top 10 Metros by Net Inflow of Users and
Their Top Origins
Rank
Metro*
Net Inflow, July
2022†
Net Inflow, July 2021
Portion of Searches from Users
Outside the Metro, July 2022
Portion of Searches from Users
Outside the Metro, July 2021
Top Origin
Top Out-of-State
Origin
1
Miami, FL
6,704
7,583
34.3%
33.7%
New York, NY
New York, NY
2
Sacramento, CA
6,550
6,806
44.5%
43.2%
San Francisco, CA
Reno, NV
3
San Diego, CA
5,689
2,868
33.7%
28.6%
Los Angeles, CA
Seattle, WA
4
Tampa, FL
5,431
4,345
49.6%
48.1%
Orlando, FL
New York, NY
5
Las Vegas, NV
5,418
5,052
48.2%
42.8%
Los Angeles, CA
Los Angeles, CA
6
Phoenix, AZ
4,853
6,510
36.9%
36.6%
Los Angeles, CA
Los Angeles, CA
7
North Port, FL
3,446
2,682
68.7%
69.5%
Chicago, IL
Chicago, IL
8
Cape Coral, FL
3,401
3,046
69.4%
70.4%
Chicago, IL
Chicago, IL
9
Portland, ME
2,582
2,544
64.2%
64.5%
Boston, MA
Boston, MA
10
San Antonio, TX
2,411
2,980
39.5%
42.1%
Austin, TX
Los Angeles, CA
*Combined statistical areas with
at least 500 users in July 2022
†Negative values indicate a net
outflow; among the two million users sampled for this analysis
only
Homebuyers are leaving expensive coastal job centers, though
movement out of the Bay Area is slowing
More homebuyers left the Bay Area, Los Angeles and New York in
July than any other metro, unchanged from the first half of the
year. Washington, D.C. and Boston round out the top five. That’s
determined by net outflow, a measure of how many more Redfin.com
users looked to leave a metro than move in.
It’s typical that homebuyers look to move out of expensive job
centers, and the trend has generally intensified during the
pandemic as white-collar employees in those places switch to remote
work.
Net outflow increased from a year earlier in four of those five
places. The Bay Area, where outflow slowed from a year earlier, is
the exception. That’s partly because northern California housing
markets are cooling faster than anywhere else in the country, with
San Francisco home prices dropping year over year in June, the only
decline in the U.S. Though Bay Area homes still sell for well over
$1 million, homebuyers there may be getting a break from
competition.
Top 10 Metros by Net Outflow of Users and
Their Top Destinations
Rank
Metro*
Net Outflow, July 2022†
Net Outflow, July 2021
Portion of Local Users Searching
Elsewhere, July 2022
Portion of Local Users Searching
Elsewhere, July 2021
Top Destination
Top Out-of-State Destination
1
San Francisco, CA
29,051
38,762
24.1%
25.2%
Sacramento, CA
Seattle, WA
2
Los Angeles, CA
25,017
21,944
20.1%
18.0%
San Diego, CA
Las Vegas, NV
3
New York, NY
19,782
18,516
28.6%
27.3%
Philadelphia, PA
Philadelphia, PA
4
Washington, DC
14,742
11,191
17.8%
15.1%
Salisbury, MD
Salisbury, MD
5
Boston, MA
8,742
7,524
19.9%
17.2%
Portland, ME
Portland, ME
6
Seattle, WA
5,222
2,818
17.5%
14.6%
Los Angeles, CA
Los Angeles, CA
7
Detroit, MI
3,704
2,485
34.1%
28.7%
Cleveland, OH
Cleveland, OH
8
Minneapolis, MN
3,334
1,301
34.2%
21.6%
Chicago, IL
Chicago, IL
9
Chicago, IL
3,284
4,132
16.0%
12.4%
Los Angeles, CA
Los Angeles, CA
10
Denver, CO
2,584
3,396
30.2%
27.4%
Chicago, IL
Chicago, IL
*Combined statistical areas with at least
500 users in July 2022
†Among the two million users sampled for
this analysis only
To view the full report, including charts and methodology,
please visit:
https://www.redfin.com/news/july-2022-housing-migration-trends/
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate
company. We help people find a place to live with brokerage,
instant home-buying (iBuying), rentals, lending, title insurance,
and renovations services. We sell homes for more money and charge
half the fee. We also run the country's #1 real-estate brokerage
site. Our home-buying customers see homes first with on-demand
tours, and our lending and title services help them close quickly.
Customers selling a home can take an instant cash offer from Redfin
or have our renovations crew fix up their home to sell for top
dollar. Our rentals business empowers millions nationwide to find
apartments and houses for rent. Since launching in 2006, we've
saved customers more than $1 billion in commissions. We serve more
than 100 markets across the U.S. and Canada and employ over 6,000
people.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220811005229/en/
Contact Redfin Redfin Journalist Services:
Isabelle Novak, (414) 861-5861 press@redfin.com
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