Share of Homebuyers Looking to Relocate Dips Slightly in October

Rhea-AI Summary

In October 2021, 29.5% of Redfin.com users expressed interest in relocating, a decrease from 31.5% earlier in the year, but higher than pre-pandemic levels of 26%. According to Redfin, as remote work becomes permanent, migration patterns are evolving, with previously popular Sunbelt cities losing favor due to rising home prices. Miami, Phoenix, and Sacramento topped the list for desired relocation destinations. Conversely, cities like San Francisco and New York experienced significant net outflows, signaling a shift toward more affordable markets.

Positive

• 29.5% of users looking to relocate, indicating ongoing housing interest.
• Miami, Phoenix, and Sacramento are popular relocation destinations.

Negative

• Decrease from 31.5% to 29.5% in users wanting to relocate.
• Cities like Sacramento saw a reduction in net inflows compared to last year.

SEATTLE, Nov. 29, 2021 /PRNewswire/ -- (NASDAQ: RDFN) —Nationwide, 29.5% of Redfin.com users looked to move to a different metropolitan area in October, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. 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.

"With many employers making remote work permanent, we expect people to continue relocating at a higher rate than they did before the pandemic," said Redfin Chief Economist Daryl Fairweather. "What will likely change are the places people choose to relocate to. 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."

Miami, Phoenix and Sacramento Are the Top Metros Homebuyers Want to Move to

Miami, Phoenix, Sacramento, Las Vegas and Tampa were the most popular migration destinations of any major U.S. metros in October, meaning they had the largest net inflows. A net inflow is a measure of how many more Redfin.com home searchers looked to move into a metro than leave.

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.

Table: Top 10 Metros by Net Inflow of Users and Their Top Origins
Rank	Metro*	Net Inflow, October 2021†	Net Inflow, October 2020	Portion of Searches from Users Outside the Metro, October 2021	Portion of Searches from Users Outside the Metro, October 2020	Top Origin	Top Out-of- State Origin
1	Miami, FL	6,897	2,226	32.1%	26%	New York, NY	New York, NY
2	Phoenix, AZ	6,343	5,554	35.8%	36.2%	Los Angeles, CA	Los Angeles, CA
3	Sacramento, CA	4,904	6,369	41%	49.7%	San Francisco, CA	Seattle, WA
4	Las Vegas, NV	4,713	5,751	42.6%	52.5%	Los Angeles, CA	Los Angeles, CA
5	Tampa, FL	4,365	2,896	46.2%	55.7%	Orlando, FL	New York, NY
6	Dallas, TX	3,717	4,247	25.2%	31.2%	Los Angeles, CA	Los Angeles, CA
7	San Antonio, TX	3,142	1,558	42.6%	43.3%	Houston, TX	Los Angeles, CA
8	Cape Coral, FL	3,025	2,050	68.9%	75.8%	Chicago, IL	Chicago, IL
9	Atlanta, GA	3,019	4,629	20%	26.4%	New York, NY	New York, NY
10	North Port, FL	2,876	1,536	66.1%	77.9%	Chicago, IL	Chicago, IL
*Combined statistical areas with at least 500 users in October 2021 †Among the 2 million users sampled for this analysis only

San Francisco, Los Angeles and New York Are the 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. A net outflow is a measure of how many more Redfin.com home searchers looked to leave a metro than move in.

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.

Table: Top 10 Metros by Net Outflow of Users and Their Top Destinations
Rank	Metro*	Net Outflow, October 2021†	Net Outflow, October 2020‡	Portion of Local Users Searching Elsewhere, October 2021	Portion of Local Users Searching Elsewhere, October 2020	Top Destination	Top Out-of- State Destination
1	San Francisco, CA	31,820	25,956	22.4%	23.6%	Sacramento, CA	Seattle, WA
2	Los Angeles, CA	26,035	16,134	19.2%	17.8%	San Diego, CA	Phoenix, AZ
3	New York, NY	16,921	28,046	26.1%	34.8%	Philadelphia, PA	Philadelphia, PA
4	Washington, DC	11,805	7,919	14.6%	12.7%	Salisbury, MD	Salisbury, MD
5	Seattle, WA	8,706	1,102	15.7%	13.4%	Los Angeles, CA	Los Angeles, CA
6	Boston, MA	5,637	-331	15.6%	11.7%	Portland, ME	Portland, ME
7	Chicago, IL	4,107	4,916	12.4%	12.2%	Cape Coral, FL	Cape Coral, FL
8	Denver, CO	1,865	2,706	25.5%	26.9%	Chicago, IL	Chicago, IL
9	Detroit, MI	1,586	280	25.8%	20.9%	Grand Rapids, MI	Chicago, IL
10	Minneapolis, MN	842	-870	20.5%	17.1%	Chicago, IL	Chicago, IL
*Combined statistical areas with at least 500 users in October 2021 †Among the 2 million users sampled for this analysis only ‡Negative values indicate a net inflow

To view the full report, including charts and methodology, please visit:
https://www.redfin.com/news/october-2021-housing-migration-trends/ 

About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), 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 take an instant cash offer from Redfin or 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 6,000 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.

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SOURCE Redfin

FAQ

What percentage of Redfin.com users wanted to relocate in October 2021?

29.5% of Redfin.com users indicated they wanted to relocate in October 2021.

Which cities were the most popular for homebuyers looking to move?

The top cities for relocation were Miami, Phoenix, and Sacramento.

How did relocation interest change from earlier in 2021 to October?

Relocation interest dropped from 31.5% at the start of 2021 to 29.5% in October.

Which cities saw the biggest net outflows in October 2021?

San Francisco, Los Angeles, and New York had the highest net outflows.

What factors are influencing the shift in migration trends?

The rise of remote work is leading to a trend toward more affordable locations.