Story at a glance
- A quarter of U.S. homebuyers to looking for homes in a different metro, according to an analysis by the real estate company Redfin.
- The top destinations are relatively affordable and sunny.
- The analysis is based on nearly 2 million Redfin.com users who viewed for-sale homes online across more than 100 metro areas in the third quarter of 2022.
Housings costs across the country are soaring amid the U.S. central bank’s aggressive effort to slow growing inflation.
A series of interest rates hikes from the Federal Reserve over the summer sent mortgage rates above 7 percent for the first time in decades and pushed many prospective buyers out of the once hot market.
Yet those those who stayed are searching for homes in more affordable locations, leading nearly a quarter of U.S. buyers to looking for homes in a different metro, according to an analysis by the real estate company Redfin.
“With a recession looming and household expenses high, many people can’t afford to buy a home in an expensive area and/or want to save money in case of an emergency, which makes relocating somewhere more affordable an attractive option,” Redfin Economics Research Lead Chen Zhao said in a media statement.
“Migration will likely slow in the coming months because the softening labor market and job losses will push more people to stay put or move in with family, though some may need to relocate for new employment opportunities. Plus, many remote workers who wanted to relocate already have.”
The analysis is based on close to 2 million Redfin.com users who viewed for-sale homes online across more than 100 metro areas in the third quarter of 2022. Then to measure the share of homebuyers looking to move from one metro to another, the company identified a potential buyer as a migrant if one of at least ten homes viewed across the quarter was outside of their current metro area.
According to Redfin, buyers are searching for relatively affordable homes in sunny locations.
Sacramento was the most popular relocation destination for the site’s users in the third quarter, with a net inflow of 8,700 buyers. Inflow was calculated by subtracting the number of buyers looking to leave a metro from the number seeking to move to the area.
The top out-of-state origin of potential buyers viewing homes in Sacramento was Chicago.
Miami, with a net inflow of 8,000 buyers, was the second top destination for those looking to leave their metro areas.
Las Vegas, San Diego and Tampa, Fla., closed out the top five places where Redfin users are looking to move, according to the analysis.
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The site also tracked the metros where users are most trying to leave, and San Franciso had the highest net outflow of potential buyers. San Francisco was followed by Los Angeles, where the net outflow of buyers was 33,600.
Here are the top ten cities Redfin users are looking to move to.
1. Sacramento, Calif.
2. Miami
3. Las Vegas
4. San Diego
5. Tampa, Fla.
6. Phoenix
7. Cape Coral, Fla.
8. North Port-Sarasota, Fla.
9. Dallas
10. Portland, Maine
Published on Oct 31,2022