Redfin reports Sacramento and Las Vegas, which
grapple with extreme heat, are the most popular destinations for
relocating homebuyers
(NASDAQ: RDFN) — A record 26% of homebuyers are looking to move
to a different part of the country, according to a new report from
Redfin (redfin.com), the technology-powered real estate brokerage.
That’s up from 24% a year ago and roughly 19% before the pandemic
began.
Elevated mortgage rates have cooled the overall U.S. housing
market, with fewer homes for sale and fewer buyers in the market.
But a high portion of the homebuyers who are moving are relocating
to different metro areas. There are 7% fewer Redfin.com users
looking to move away from their home metro than a year ago. That’s
compared to a 16.5% decline for those searching within their home
metro.
Relocations are holding up better than in-metro moves largely
because homebuyers are searching for affordability, and remote work
gives many Americans the freedom to move. Nine of the 10 most
popular migration destinations have a lower median home-sale price
than the most common origin of homebuyers moving in.
Sacramento, CA, for instance, is the most popular destination
for relocating homebuyers. The typical home in that metro sells for
$575,000, nearly a million dollars less than the typical home in
San Francisco ($1,480,000), the most popular origin of buyers
moving in. With a 7% mortgage rate–roughly the average for
August–the monthly payment for the median-priced Sacramento home is
$3,889, compared to $10,010 for the median-priced San Francisco
home.
“Half of the buyers I’m working with are moving in from out of
town, all but one from the Bay Area,” said Alison Williams, a
Redfin Premier agent in Sacramento. “Most of them are moving not
necessarily because they can’t afford the Bay Area, but because
they want a bigger home and better quality of life. They’re
searching for high-end homes with spacious yards where they can
raise a family. I’m also working with a few investors who are
looking to buy a home here and rent it out for a few years before
moving in themselves.”
Sacramento, Las Vegas and Orlando are the most popular
migration destinations
After Sacramento, Las Vegas and three Florida metros–Orlando,
North Port-Sarasota and Tampa–are the most popular destinations for
homebuyers looking to relocate.
Myrtle Beach, SC climbed to #6 after debuting on Redfin’s list
of most popular destinations in July at #9. Another Florida metro,
Cape Coral, is also in the top 10.
Those metros have a few things in common: They’re more
affordable than the most common origin of homebuyers moving in, and
they face increasing climate risks. Sacramento and Las Vegas face
severe heat risk, Orlando, North Port-Sarasota, Myrtle Beach and
Cape Coral face extreme wind/hurricane risk, and Tampa and Cape
Coral are at extreme risk of flooding.
While research has shown that homebuyers consider climate risk
when deciding where to live, affordability is often a more
significant factor. A recent Redfin survey found that roughly 8% of
U.S. residents likely to move within the next year are doing so
because they’re concerned about the impact of climate change on
their previous area, compared with 22% moving for a lower cost of
living.
Top 10 Metros Homebuyers Are
Moving Into, by Net Inflow Net inflow = Number of Redfin.com
home searchers looking to move into a metro area, minus the number
of searchers looking to leave
Rank
Metro*
Net Inflow, August
2023
Net Inflow, August
2022
Top Origin
Top Out-of-State
Origin
1
Sacramento, CA
5,100
8,900
San Francisco, CA
Chicago, IL
2
Las Vegas, NV
5,000
6,800
Los Angeles, CA
Los Angeles, CA
3
Orlando, FL
4,300
2,200
New York, NY
New York, NY
4 (tie)
North Port-Sarasota, FL
4,000
5,300
New York, NY
New York, NY
4 (tie)
Tampa, FL
4,000
7,100
New York, NY
New York, NY
6
Myrtle Beach, SC
3,700
3,100
Washington, D.C.
Washington, D.C.
7
Cape Coral, FL
3,600
5,400
Chicago, IL
Chicago, IL
8
Dallas, TX
3,400
4,700
Los Angeles, CA
Los Angeles, CA
9
Portland, ME
3,300
3,100
Boston, MA
Boston, MA
10
Houston, TX
3,100
3,300
New York, NY
New York, NY
*Combined statistical areas with
at least 500 users searching to and from the region in June
2023-August 2023
Homebuyers are leaving expensive cities like San Francisco,
New York and Los Angeles
Homebuyers are leaving San Francisco, New York and Los Angeles
more than any other metro in the country. That’s based on net
outflow, a measure of how many more Redfin.com users are looking to
leave a metro than move in.
It’s typical for expensive job centers to top the list of places
homebuyers are moving away from, as those people seek more
affordable housing. Homebuyers leaving Los Angeles, for instance,
are most commonly moving to Las Vegas, where homes are half the
price.
Top 10 Metros Homebuyers Are
Leaving, by Net Outflow Net outflow = Number of Redfin.com home
searchers looking to leave a metro area, minus the number of
searchers looking to move in
Rank
Metro*
Net Outflow, August
2023
Net Outflow, August
2022
Portion of Local Users
Searching Elsewhere
Top Destination
Top Out-of- State
Destination
1
San Francisco, CA
26,900
39,000
24%
Sacramento, CA
Seattle, WA
2
New York, NY
25,300
23,900
30%
Miami, FL
Miami, FL
3
Los Angeles, VA
20,200
32,700
19%
Las Vegas, NV
Las Vegas, NV
4
Washington, D.C.
14,500
18,600
19%
Salisbury, MD
Salisbury, MD
5
Chicago, IL
5,000
3,900
17%
Milwaukee, WI
Milwaukee, WI
6
Boston, MA
4,600
10,100
21%
Portland, ME
Portland, ME
7
Hartford, CT
3,400
750
79%
Boston, MA
Boston, MA
8
Detroit, MI
2,200
4,800
27%
Grand Rapids, MI
Cape Coral, FL
9 (tie)
Denver, CO
2,100
3,900
35%
Chicago, IL
Chicago, IL
9 (tie)
Seattle, WA
2,100
7,500
19%
Spokane, WA
Phoenix, AZ
*Combined statistical areas with
at least 500 users searching to and from the region in June
2023-August 2023
To view the full report, including charts and methodology,
please visit:
https://www.redfin.com/news/housing-migration-trends-august-2023
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate
company. We help people find a place to live with brokerage,
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 in
certain markets can 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. Customers who
buy and sell with Redfin pay a 1% listing fee, subject to minimums,
less than half of what brokerages commonly charge. Since launching
in 2006, we've saved customers more than $1.5 billion in
commissions. We serve more than 100 markets across the U.S. and
Canada and employ over 5,000 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20230926910799/en/
Redfin Journalist Services: Ally Braun 206-588-6863
press@redfin.com
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