Fewer Are Moving, But Homebuyers Still Love the Sun Belt

Homebuyers are flocking to the Sun Belt, in a continuation of a trend spawned by the COVID-19 pandemic.

According to Redfin data, 24.1% of buyers sought to move to a new city during the three months ending in November, a percentage the firm says is on par with the record high set in the summer and up from around 18% before the pandemic. And while Sacramento was the top migration destination in November, Sun Belt metros occupy most of the other top spots on Redfin’s list, with Las Vegas nabbing the #2 spot, followed by Miami, Tampa and San Diego.

In addition, half of the top 10 cities are in Florida, and Refin analysts note that the typical home in eight of the top 10 is more affordable than in the most common origin for homebuyers moving in. Seven of the top 10 are in states with no state income tax.

Notably, more buyers looked to leave expensive gateway cities like San Francisco, Los Angeles, New York, Washington, D.C. and Chicago than any other metro. But across the board, the number of buyers looking to relocate is falling: fewer buyers looked to move to each of the top 10 migration destinations last month than in October. Las Vegas, for example, posted net inflows of 6,400 in November, 7,100 in October and 8,700 in September, while Miami had a net inflow of 5,900, down from 6,700 in October and 8,000 in September.

“Las Vegas is still popular with out-of-town buyers, especially from coastal places like San Francisco, Los Angeles and Seattle who are seeking out lower home prices. But migration is slowing as the market cools,” said Las Vegas Redfin agent Tzahi Arbeli. “That’s partly because people are hoping for rates to come down before they move, and it’s also because people are worried about buying a home that may go down in value. From my point of view, there are a few upsides to buying now. There’s more to choose from than there used to be, sellers are willing to negotiate and prices have dropped from their peak.”