Redfin Reports Homebuyers Are Looking to Relocate to Affordable Areas–Especially in Florida–Amid High Rates, Prices

Rhea-AI Summary

According to Redfin's latest report, 24.1% of U.S. homebuyers are considering moving to different metro areas, nearing a record high. This increase stems from high mortgage rates and housing prices, prompting buyers to seek affordable locations. The average 30-year mortgage rate reached 6.9% in October. Popular destinations include Sacramento, Las Vegas, and Miami, with many buyers leaving expensive cities like San Francisco and New York. Despite challenges like Hurricane Ian, Florida remains a favored relocating state.

Positive

• High interest in relocation among buyers, with 24.1% considering different metro areas.
• Affordability driving relocation, particularly to the Sun Belt region.
• Top destinations include popular cities like Sacramento, Las Vegas, and Miami.

Negative

• Housing market cooling due to high mortgage rates and inflation.
• Average mortgage rates surged to 6.9%, impacting affordability for buyers.

The share of Redfin.com users looking to move to a different metro area is near its record high as high rates and prices up the appeal of affordable places

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) —Nearly one-quarter (24.1%) of U.S. homebuyers looked to move to a different metro area in the three months ending in October, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That is on par with the record high of 24.2% set in the third quarter and up from roughly 18% in 2019, before the pandemic ushered in the remote-work era that gave many Americans more flexibility to relocate.

The U.S. housing market has cooled significantly during the second half of 2022 as high mortgage rates, inflation and a stumbling economy deter would-be homebuyers and sellers. But of the people who are still buying homes, an unprecedented portion are relocating to new metros. Many are seeking relative affordability as near-7% mortgage rates and persistently high home prices make expensive parts of the country even more expensive.

The average 30-year-fixed mortgage rate was 6.9% in October, up 3.83 percentage points from 3.07% one year earlier—the largest year-over-year increase during any month since 1981. That has caused monthly mortgage payments for homebuyers to roughly double from a year earlier. And while rates have come down slightly in November, they’re still significantly higher than they were last year.

Homebuyers are looking to move to the Sun Belt, especially Florida

Sacramento, Las Vegas and Miami were the most popular destinations for Redfin.com users looking to relocate, followed by San Diego and Tampa. Popularity is determined by net inflow, which is the number of people looking to move into a metro minus the number of people looking to leave.

Half of the top 10 migration destinations are in Florida (Cape Coral, North Port-Sarasota and Orlando are all on the list, in addition to Miami and Tampa). That’s despite the fact that the state was hit by Hurricane Ian, one of the deadliest, most destructive storms in U.S. history, in September.

Relatively affordable Sun Belt metros are typically most popular with relocating homebuyers, largely because buyers can get more home for less money. In Las Vegas, for instance, the typical home cost $410,000 in October, roughly half the price of the typical home in Los Angeles ($823,000)—the most common origin for people moving there.

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	Top Origin	Top Out-of-State Origin
1	Sacramento, CA	7,800	San Francisco, CA	Chicago, IL
2	Las Vegas, NV	7,100	Los Angeles, CA	Los Angeles, CA
3	Miami, FL	6,700	New York, NY	New York, NY
4	San Diego, CA	6,500	Los Angeles, CA	Chicago, IL
5	Tampa, FL	5,600	New York, NY	New York, NY
6	Phoenix, AZ	4,700	Los Angeles, CA	Los Angeles, CA
7	Cape Coral, FL	4,600	Chicago, IL	Chicago, IL
8	North Port-Sarasota, FL	4,300	Chicago, IL	Chicago, IL
9	Dallas, TX	3,800	Los Angeles, CA	Los Angeles, CA
10	Orlando, FL	3,700	New York, NY	New York, NY
*Combined statistical areas with at least 500 users searching to and from the region in August-October 2022

Buyers are leaving expensive West Coast and East Coast cities

More homebuyers looked to leave San Francisco, Los Angeles, New York, Washington, D.C. and Boston than any other major metro. That’s determined by net outflow, a measure of how many more Redfin.com users looked to leave an area than move in.

Homebuyers typically leave expensive coastal job centers more than they leave other places, a trend that started before the pandemic and picked up steam due to remote work and rising housing costs. They most commonly head to more affordable regions. Sacramento, where homes cost less than half what they do in the Bay Area, is the most common destination for people leaving San Francisco, for instance.

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	Portion of Local Users Searching Elsewhere	Top Destination	Top Out-of-State Destination
1	San Francisco, CA	35,800	24%	Sacramento, CA	Seattle, WA
2	Los Angeles, CA	34,100	20%	San Diego, CA	Las Vegas, NV
3	New York, NY	22,400	27%	Miami, FL	Miami, FL
4	Washington, D.C.	18,100	18%	Salisbury, MD	Salisbury, MD
5	Boston, MA	7,800	19%	Portland, ME	Portland, ME
6	Chicago, IL	7,300	17%	Milwaukee, WI	Milwaukee, WI
7	Detroit, MI	4,200	32%	Cleveland, OH	Cleveland, OH
8	Denver, CO	3,400	31%	Chicago, IL	Chicago, IL
9	Seattle, WA	1,600	17%	Phoenix, AZ	Phoenix, AZ
10	Philadelphia, PA	1,500	19%	Salisbury, MD	Salisbury, MD
*Combined statistical areas with at least 500 users searching to and from the region in August-October 2022

To view the full report, including methodology, please visit:

https://www.redfin.com/news/housing-migration-trends-october-2022

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 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. Since launching in 2006, we've saved customers more than $1 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221129005374/en/

Redfin Journalist Services:

Kenneth Applewhaite, 206-588-6863

press@redfin.com

Source: Redfin

FAQ

What percentage of U.S. homebuyers are looking to relocate according to Redfin?

As of October, 24.1% of U.S. homebuyers are considering moving to different metro areas.

What are the most popular relocation destinations for homebuyers?

The most popular relocation destinations include Sacramento, Las Vegas, and Miami.

How have mortgage rates affected homebuyer relocation trends?

High mortgage rates, averaging 6.9% in October, have increased the appeal of affordable areas, influencing relocation trends.

What major cities are homebuyers leaving according to Redfin?

Homebuyers are predominantly leaving expensive cities like San Francisco, Los Angeles, and New York.

How does the current housing market compare to previous years?

The current housing market has cooled significantly compared to 2019, with only 24.1% of buyers looking to relocate, up from 18%.