As homebuyers relocate at unprecedented levels, home prices in many once-affordable metros have surged and priced out many would-be buyers. But a handful of popular migration destinations, mainly in the South, are still relatively affordable, according to a Redfin report.
One in 3 (32 percent) of homebuyers nationwide looked to move to a different metro area in April, close to the all-time high of 32.3 percent set in the first quarter.
The typical home in Virginia Beach, Va., the 15th-most popular destination for buyers moving to a different metro, sold for $315,0000 in April. That’s well below the national median of $424,400 and the lowest median sale price of the top 20 migration destinations in the country.
A pair of Texas metros rank 9th and 10th on the list of most popular destinations: San Antonio, where the typical home sells for $330,000, and Houston ($340,000). Jacksonville, Fla., (13th, $357,000) and Bakersfield, Calif., (20th, $365,000) round out the top five. The others are Tampa, Fla. (3rd, $370,000), Atlanta (12th, $383,000) and Cape Coral, Fla. (6th, $419,000).
While the destinations above may be affordable for people moving in from expensive areas like New York, San Francisco and Seattle, many locals have been priced out. Homebuyers in Tampa, for example, need to earn 47.8 percent more than they did a year ago to afford the median-priced home, and buyers in Atlanta need to earn 40.6 percent more.
“A lot of people are moving to Florida for the price point, beaches and quality of life, especially since the pandemic started,” Redfin Tampa team manager Eric Auciello said in a release. “For a buyer who sold their home in a place like New York for a million dollars, Tampa is affordable. They can get a nice home in a desirable neighborhood for around $550,000. But for locals looking in the $300,000 to $400,000 price point, there’s next to nothing for sale. Locals are turning to condos or moving to more affordable rural areas.”
Surging home prices have made popular destinations like Miami, Phoenix and Sacramento, Calif., unaffordable for many buyers
In four of the top five migration hotspots, home prices are above the national average. In Miami — the No. 1 migration destination — the typical home sold for $475,000 in April, up from $330,000 in April 2020. In No. 2 ranked Phoenix, the typical home sold for $480,000, up from $305,000 in April 2020. In Sacramento, ranked four, prices went from $430,000 to $605,000, and in number-5 ranked Las Vegas, they went from $294,000 to $445,000. Tampa, ranked 3, was the only metro in the top five with a median sale price below the national level.
Sun Belt migration hotspots are also home to some of the highest inflation rates in the country, meaning costs of other goods and services are also soaring. While they’re still some of the hottest destinations, the flow of buyers into Phoenix and Las Vegas is slower than it was a year ago.
“Places like Phoenix and Sacramento are still relatively affordable compared to San Francisco or Los Angeles, but they’re not nearly as much of a bargain as they were before the pandemic,” Redfin Deputy Chief Economist Taylor Marr said. “Now that homes everywhere have become more expensive, buyers searching for deals should expand their horizons. The good news is that even with surging prices and mortgage rates, there are plenty of relatively affordable options: Buyers from expensive areas looking for more housing options can consider parts of the country that are still relatively affordable, like San Antonio or parts of Florida.”
San Francisco saw more homebuyers looking to leave than any other metro in April. Next came Los Angeles, New York, Washington, D.C. and Seattle.