More than a quarter of those searching for homes on Redfin during the fourth quarter searched for a home in another metropolitan area, with Phoenix, Sacramento, Las Vegas and Atlanta topping the list of migration destinations, according to a new report.
Redfin said the 26 percent of home searchers looking to move to another metropolitan area tied the all-time high for the national share of home searchers looking to relocate that was set in the third quarter of 2019.
According to the report, some of the most expensive areas in the country topped the list of metropolitan area facing negative migration during the fourth quarter, including New York, San Francisco, Los Angeles and Washington, D.C.
“The current inventory crunch really started building in the fourth quarter, pushing home prices in the expensive coastal cities back up after a slight reprieve earlier in the year,” Redfin Chief Economist Daryl Fairweather said in a release. “As price increases begin to gain steam again in these areas, we’re predicting that migration to more affordable areas will increase, which in turn will begin to drive prices up there, as well.”
Portland, Ore., regained a spot in the top 10 list of metropolitan areas with the highest net inflow of Redfin users, coming in at seventh. Nashville, Tenn., also was a new addition to the top 10.
Redfin said Portland’s median home price ($400,000) makes it an attractive location for inbound residents from more expensive cities in the West such as San Francisco (median price $1.32 million); Seattle ($572,500); and Los Angeles ($649,000).
“The ability to work remotely is a huge factor in people relocating, especially within the same time zone,” Portland Redfin agent Megan Warren said. “I just met with a homebuyer who is moving here from Oakland in the spring. Working remotely is allowing him to sell his condo in a less desirable part of the Bay Area for over $500,000 and buy a serious upgrade in space, safety, and neighborhood in the Portland area.”