More Homebuyers Looking to Stay Put
Sunbelt migration destinations such as Phoenix, Atlanta and Austin will probably fall out of favor because of skyrocketing home prices.
The share of homebuyers looking to relocate dipped slightly in October, according to a report by Redfin.
Nationwide, 29.5% of Redfin.com users looked to move to a different metropolitan area in October. That’s down from a peak of 31.5% at the beginning of the year, but still higher than the 26% levels seen before the coronavirus pandemic.
“What will likely change are the places people choose to relocate to,” Redfin Chief Economist Daryl Fairweather said in prepared remarks. “Popular Sunbelt migration destinations, including Phoenix, Atlanta and Austin, will probably fall out of favor as skyrocketing home prices have rendered them less affordable. Northern cities like Columbus, Harrisburg and Indianapolis will likely rise in popularity as homebuyers seek better bang for their buck.
“With many employers making remote work permanent, we expect people to continue relocating at a higher rate than they did before the pandemic.”
Top Metros Where Homebuyers Want to Move
Miami, Phoenix, Sacramento, Las Vegas and Tampa were the most popular migration destinations in October, meaning they had the largest net inflows.
While Sunbelt cities remain popular, four of the 10 top metros people wanted to relocate to in October—Sacramento, Las Vegas, Dallas and Atlanta—saw fewer people looking to move in than a year earlier. Sacramento, for example, saw a net inflow of 4,904 Redfin.com users, down from a net inflow of 6,369 in October 2020.
Top Metros Homebuyers Want to Leave
San Francisco, Los Angeles, New York, Washington, D.C., and Seattle saw more Redfin.com users looking to leave than any other major metro areas in October, meaning they had the biggest net outflows.
Dense, expensive cities often experience the biggest exodus of residents—a trend that has intensified during the pandemic as more Americans have been able to move to more affordable places thanks to remote work.
This report comes on the heels of another from Redfin that found that the distance that homebuyers were willing to travel when relocating was starting to narrow.