Redfin Reports Miami Is the Most Popular Metro For Relocators, With Homebuyers Drawn to Comparatively Low Costs

Rhea-AI Summary

A record 25% (24.9%) of home searchers on Redfin.com sought to relocate to different U.S. metros in January 2023, influenced by remote work and high housing costs. This trend indicates an increase from 24.5% in Q4 2022 and 22.8% a year prior. The typical monthly housing payment rose 26% year-over-year, contributing to the affordability crisis. Miami emerged as the top destination, while San Francisco and Los Angeles saw the highest outflows. A significant decline in homebuyers relocating to popular destinations was noted, reflecting a cooling housing market.

Positive

• Record high of 24.9% of home searchers looking to relocate.
• Miami reclaimed the top migration spot, indicating strong demand.

Negative

• Overall home sales in the U.S. have significantly decreased compared to last year.
• The net outflow from popular destinations decreased, suggesting declining buyer interest.

A record 25% of Redfin.com home searchers looked to move to a different U.S. metro in January, many in search of relatively affordable housing

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) —A record one-quarter (24.9%) of Redfin.com users nationwide looked to move to a different metro area in January as remote work and elevated housing costs drove homebuyers to relocate. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

The share of relocating homebuyers is up from 24.5% in the fourth quarter, 22.8% a year ago and roughly 18% before the pandemic.

High mortgage rates have caused many would-be homebuyers to back out of the market, with overall U.S. home sales down considerably from a year ago. But among the people who are buying homes, a record portion are relocating. That’s largely due to the ongoing affordability crisis.

The typical monthly housing payment is 26% higher than it was a year ago. That’s because mortgage rates remain near the 20-year high hit in November and in much of the country, home prices are still up from a year ago despite the cooling market.

High housing costs—along with the rising price of other goods and services due to inflation—make relatively affordable destinations attractive, especially for remote workers with the flexibility to relocate. While home prices soared last year in many popular migration destinations like Sacramento and Phoenix, those places are now among those where prices are dropping fastest. Plus, they’re much more affordable than the places people are leaving. Los Angeles, where the typical home sells for about $800,000, was the most common origin for homebuyers moving to Las Vegas and Dallas, both popular destinations where the typical home sells for roughly half of that.

Miami reclaims status as top migration hotspot

Miami was the most popular migration destination in January, claiming the top spot for the first time since August. Popularity is determined by net inflow, a measure of how many more Redfin.com users are looking to move into an area than leave. Half of the 10 most popular destinations are in Florida: Tampa, Cape Coral, Orlando and North Port-Sarasota are also on the list.

Homes in Florida certainly aren’t cheap; the typical Miami home sold for $470,000 in January, compared with the $383,000 national median. But they do tend to be less expensive than the places people are coming from. The typical home in New York, the top origin for homebuyers relocating to Miami, sold for $650,000 in January. Plus, Florida’s overall cost of living is lower because it doesn’t have a state income tax.

“A lot of buyers have flocked into coastal Florida from out of town over the last several months,” said Elena Fleck, a Redfin agent in Palm Beach, which is part of the larger Miami metro area. “Buyers moving in from places like New York and San Francisco are helping the local market recover from last fall’s housing downturn. They’re not nearly as fazed by high mortgage rates because homes here are so much less expensive than their hometowns, and they get larger lots, pools, nice weather and lower taxes.”

After Miami, Sacramento, Las Vegas and Phoenix were the most popular destinations. Those are all mainstays on the migration hotspot list because, like Florida, buyers moving in from expensive coastal cities can find bigger homes for less money in warm climates. The typical home in eight of the 10 most popular destinations is less expensive than the typical home in the most common origin.

But fewer Redfin.com users looked to move to eight of the 10 most popular destinations than a year earlier, a shift that’s due to overall homebuying demand coming down from its high.

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, Jan. 2023	Net Inflow, Jan. 2022	Top Origin	Top Out-of-State Origin
1	Miami, FL	7,200	11,400	New York, NY	New York, NY
2	Sacramento, CA	6,200	7,200	San Francisco, CA	Chicago, IL
3	Las Vegas, NV	5,700	6,900	Los Angeles, CA	Los Angeles, CA
4	Phoenix, AZ	5,500	9,900	Seattle, WA	Seattle, WA
5	Tampa, FL	5,200	7,500	New York, NY	New York, NY
6	Dallas, TX	4,400	7,300	Los Angeles, CA	Los Angeles, CA
7	Cape Coral, FL	4,200	5,500	Chicago, IL	Chicago, IL
8	Orlando, FL	3,800	1,700	New York, NY	New York, NY
9	North Port-Sarasota, FL	3,800	5,300	Chicago, IL	Chicago, IL
10	Houston, TX	3,700	2,900	New York, NY	New York, NY
*Combined statistical areas with at least 500 users searching to and from the region in November 2022-January 2023

Homebuyers are leaving coastal California more than anywhere else

More homebuyers looked to leave San Francisco and Los Angeles than any other U.S. metro in January. Next come New York, Washington, D.C., Chicago and several other major cities. This ranking is determined by net outflow, a measure of how many more people are looking to leave a metro than move in.

Expensive coastal areas are perennially on the list of places people are looking to leave, a trend that has been exacerbated by remote work.

There are fewer homebuyers leaving most of those places than a year earlier, reflecting the slow housing market. The net outflow from seven of the top 10 metros was smaller in the fourth quarter than a year earlier. The slowdown was especially pronounced in Seattle, which had a net outflow of roughly 3,400 in January, down from 19,000 a year earlier.

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, Jan. 2023	Net Outflow, Jan. 2022	Portion of Local Users Searching Elsewhere	Top Destination	Top Out-of-State Destination
1	San Francisco, CA	30,200	41,500	26%	Sacramento, CA	Seattle, WA
2	Los Angeles, CA	20,100	31,000	18%	Las Vegas, NV	Las Vegas, NV
3	New York, NY	19,800	19,700	27%	Miami, FL	Miami, FL
4	Washington, D.C.	14,900	15,200	18%	Miami, FL	Miami, FL
5	Chicago, IL	7,900	6,400	18%	Cape Coral, FL	Cape Coral, FL
6	Boston, MA	5,600	9,400	20%	Portland, ME	Portland, ME
7	Seattle, WA	3,400	19,000	19%	Phoenix, AZ	Phoenix, AZ
8	Denver, CO	3,300	3,400	33%	Chicago, IL	Chicago, IL
9	Hartford, CT	2,400	600	74%	Boston, MA	Boston, MA
10	Detroit, MI	1,400	250	25%	Grand Rapids, MI	Grand Rapids, MI
*Combined statistical areas with at least 500 users searching to and from the region in November 2022-January 2023

To view the full report, including charts and methodology, please visit:
https://www.redfin.com/news/housing-migration-trends-january-2023

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/20230227005175/en/

Redfin Journalist Services:

Kenneth Applewhaite, 206-588-6863

press@redfin.com

Source: Redfin

FAQ

What percentage of Redfin.com users looked to relocate in January 2023?

24.9% of home searchers on Redfin.com sought to relocate to different U.S. metros in January 2023.

Which city was the most popular migration destination in January 2023?

Miami was the most popular migration destination among homebuyers in January 2023.

What were the top cities homebuyers are leaving according to Redfin?

San Francisco and Los Angeles had the highest outflows of homebuyers in January 2023.

How have housing costs affected relocation trends?

High housing costs are driving homebuyers to seek more affordable locations, impacting relocation trends.

What is the typical monthly housing payment increase reported?

The typical monthly housing payment is reported to be 26% higher than a year ago.

What does the data indicate about moving trends in popular metros?

The data shows a decline in the net inflow of homebuyers to eight of the ten most popular destinations compared to last year.