Nearly 29% of Redfin.com Users Searched For Homes Outside Their Area in July and August

Rhea-AI Summary

According to Redfin's latest migration report, 28.7% of Redfin.com users sought to relocate to different metro areas in July and August 2020, marking a rise from 27.4% in Q2. This is the highest rate recorded since tracking began in 2017. Notably, areas like Sacramento and Austin saw significant net inflows as buyers left expensive coastal cities, thanks to remote work options. Median home prices are rising sharply across these regions, with Sacramento up 11.4% to $468,000. Conversely, cities like New York and San Francisco experienced the largest net outflows as residents seek affordable housing.

Positive

• 28.7% of users are looking to relocate, the highest rate since tracking began.
• Sacramento and Austin emerged as top destinations with significant net inflow of users.
• Median home prices in Sacramento and Tampa rose 11.4% and 12.8% respectively, reflecting strong demand.

Negative

• New York, San Francisco, and Los Angeles continue to see the largest net outflows of homebuyers.
• The portion of local users in San Francisco searching for homes elsewhere rose from 21% to 24.2% year-over-year.

SEATTLE, Sept. 24, 2020 /PRNewswire/ -- (NASDAQ: RDFN) -- Nationwide, 28.7% of Redfin.com users looked to move to another metro area in July and August, according to the latest migration report from Redfin (www.redfin.com), the technology-powered real estate brokerage. That is up from 27.4% in the second quarter and the highest share since Redfin started tracking migration in 2017. The analysis is based on a sample of more than two million Redfin.com users who searched for homes across 87 metro areas so far in the third quarter of 2020.

The national housing market is booming as the coronavirus pandemic changes what people look for in a home, such as more space for work and family life. Those are also reasons why people are continuing to leave expensive coastal areas like New York, San Francisco and Los Angeles for places like Sacramento and Austin, where homes tend to be more affordable and more spacious.

"People who could barely afford to rent a one- or two-bedroom apartment in New York or San Francisco are finding that with their newly remote job, they can buy a nice-sized house in the most desirable part of a place like Sacramento, Tampa or Las Vegas," said Redfin chief economist Daryl Fairweather. "And their big, coastal city salaries allow them to outbid local homebuyers in bidding wars, which is starting to drive up home prices in those areas. The trend is likely to continue as remote work becomes permanent for more companies."

About half of all Redfin.com home searches in Sacramento, Tampa and Las Vegas were from out-of-towners. The median Sacramento home price was up 11.4% year over year to $468,000 in August, in line with the 11% national increase, the biggest year-over-year price increase in six years. Prices were up 12.8% to $267,000 in Tampa, and 7.8% to $310,000 in Las Vegas.

Sacramento, Austin and Phoenix are the most popular destinations
Sacramento is the most popular destination for homebuyers looking to move to a different metro area, with more than half of Redfin.com users searching from another area and the biggest net inflow of Redfin.com users in July and August. A net inflow means more people are looking to move in than leave, while a net outflow means more people are looking to leave than move in.

Austin has moved into second place in terms of net inflow. Although Austin is typically on the top 10 list of most popular destinations, this is the first time it has broken into the top three since Redfin began tracking migration. Sacramento and Austin—like Phoenix, Las Vegas and Atlanta, which round out the top five—are affordable relative to coastal areas, with median home prices under $475,000 in August, compared with $1.5 million in San Francisco and $710,000 in Los Angeles. They're all also inland areas with warm weather.

"I've seen more and more people moving to Austin from California, New York, Seattle and Chicago, especially since the pandemic began," said local Redfin agent April Miller. "The influx of people coming from other areas has contributed to an uptick in bidding wars, and most listings with multiple offers go to out-of-town buyers. People are moving in for more affordable homes and lower taxes, and many of them also mention new jobs and a desire to be closer to family."

Top 10 Metros by Net Inflow of Users and Their Top Origins
Rank	Metro*	Net Inflow†	Net Inflow LY	Portion of Searches from Users Outside the Metro, July and August 2020	Portion of Searches from Users Outside the Metro, July and August 2019	Top Origin	Top Out-of- State Origin
1	Sacramento, CA	10,764	6,261	50.5%	44.1%	San Francisco, CA	Reno, NV
2	Austin, TX	7,040	4,077	37.8%	32.5%	San Francisco, CA	San Francisco, CA
3	Phoenix, AZ	7,039	5,409	34.4%	32.4%	Los Angeles, CA	Los Angeles, CA
4	Las Vegas, NV	6,860	5,042	48.6%	45.3%	Los Angeles, CA	Los Angeles, CA
5	Atlanta, GA	5,975	4,894	25.8%	26.5%	New York, NY	New York, NY
6	Dallas, TX	5,250	2,941	29.1%	23.8%	Los Angeles, CA	Los Angeles, CA
7	Tampa, FL	4,125	2,815	55.4%	53.7%	Orlando, FL	New York, NY
8	Nashville, TN	3,890	1,870	36.8%	29.3%	New York, NY	New York, NY
9	Miami, FL	3,398	2,227	26.1%	25.0%	New York, NY	New York, NY
10	Charlotte, NC	3,361	2,450	39.6%	40.2%	New York, NY	New York, NY
*Combined statistical areas with at least 500 users in Q3 2020 †Negative values indicate a net outflow; among the two million users sampled for this analysis only

People are looking to move away from New York, San Francisco and Los Angeles
New York, San Francisco, Los Angeles, Washington, D.C. and Chicago had the biggest net outflows in July and August, as they did in the second quarter. Expensive coastal areas typically top the list of places Redfin.com users are looking to leave.

"People are leaving New York City because they want bigger, better homes for the same price, and they can get them outside the city," said local Redfin agent Ken Wile. "Many people who were living in relatively small $1 million or $2 million apartments no longer need to live close to their office because they're working remotely, and now they want more space and a separate, quiet space for Zoom calls. Plus, they want to take advantage of low mortgage rates."

The portion of Redfin.com users in New York looking to move away has declined since last year, but that's likely because a lot of New Yorkers searching for homes elsewhere have already left the metro, so their search origins reflect their current location.

In San Francisco, 24.2% of local Redfin.com users searched for a home in a different metro area in July and August, up from 21% during the same time period last year. The share of Redfin.com users looking to leave Los Angeles, Washington, D.C. and Chicago has also increased since last year.

Top 10 Metros by Net Outflow of Users and Their Top Destinations
Rank	Metro*	Net Outflow†	Net Outflow LY	Portion of Local Users Searching Elsewhere, July and August 2020	Portion of Local Users Searching Elsewhere, July and August 2019	Top Destination	Top Out-of- State Destination
1	New York, NY	40,030	29,757	35.3%	39.7%	Boston, MA	Boston, MA
2	San Francisco, CA	36,436	23,515	24.2%	21.0%	Sacramento, CA	Seattle, WA
3	Los Angeles, CA	18,949	14,257	16.9%	16.1%	San Diego, CA	Las Vegas, NV
4	Washington, DC	12,458	7,517	13.6%	11.8%	Salisbury, MD	Salisbury, MD
5	Chicago, IL	5,505	3,988	11.9%	10.5%	South Bend, IN	South Bend, IN
6	Denver, CO	5,308	2,784	26.9%	23.4%	Seattle, WA	Seattle, WA
7	Seattle, WA	4,810	1,387	14.1%	11.4%	Bellingham, WA	Los Angeles, CA
8	Milwaukee, WI	2,068	981	37.3%	39.7%	Chicago, IL	Chicago, IL
9	Indianapolis, IN	1,412	317	36.6%	29.3%	Chicago, IL	Chicago, IL
10	Rockford, IL	888	345	87.4%	-	Chicago, IL	Madison, WI
*Combined statistical areas with at least 500 users in Q3 2020 †Among the two million users sampled for this analysis only

To read the full report and methodology, please visit: https://www.redfin.com/blog/july-august-2020-housing-migration-trends

About Redfin
Redfin (www.redfin.com) is a technology-powered residential real estate company, redefining real estate in the consumer's favor in a commission-driven industry. We do this by integrating every step of the home buying and selling process and pairing our own agents with our own technology, creating a service that is faster, better and costs less. We offer brokerage, iBuying, mortgage, and title services, and we also run the country's #1 real estate brokerage search site, offering a host of online tools to consumers, including the Redfin Estimate. We represent people buying and selling homes in over 90 markets in the United States and Canada. Since our launch in 2006, we have saved our customers over $800 million and we've helped them buy or sell more than 235,000 homes worth more than $115 billion.

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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SOURCE Redfin

FAQ

What percentage of Redfin.com users looked to move in July and August 2020?

28.7% of Redfin.com users sought to move to different metro areas during this period.

Which metro areas have the highest net inflow of users according to Redfin's report?

Sacramento and Austin ranked highest for net inflow of users.

What was the median home price increase in Sacramento according to Redfin?

The median home price in Sacramento increased by 11.4% to $468,000.

How has remote work affected migration trends in the housing market?

Many buyers are moving to more affordable metro areas due to remote work, driving up demand and home prices.

Which cities experienced the greatest net outflows of users?

New York, San Francisco, and Los Angeles saw the largest net outflows of homebuyers.