A record 32.4 percent of Redfin.com users looked to move to a different metro area in January, according to a Redfin report. That’s up from the previous record of 31.5 percent in the first quarter of 2021 and much higher than before the pandemic, when only a quarter of homebuyers were interested in relocating.
Remote work and low mortgage rates have allowed many to relocate to more affordable regions and spacious homes, according to Redfin.
“I predict the share of homebuyers looking to move to a different area will continue to rise throughout the year,” Redfin Chief Economist Daryl Fairweather said in a release. “With mortgage rates going up and rents skyrocketing, moving somewhere more affordable is one of the only ways for many Americans to stay within their housing budget. Even workers who are unable to work from home should feel confident about finding a job in a new location with the tight labor market.”
Permanent remote-work policies and the ongoing housing shortage also will likely keep many moving. If a buyer becomes frustrated by a lack of inventory in one metro, they may relocate to a place with more affordable homes to choose from.
Miami was the most popular migration destination of all the major metros in January, unchanged from the third and fourth quarters of 2021. Miami was followed by Phoenix, Tampa, Fla., Sacramento, Calif., and Las Vegas, all perennial favorites for relocators.
Although the five most popular metros are still affordable compared with coastal job centers, home prices are rising rapidly. In Miami, the typical home sold for $436,900 in January, up 18.1 percent year-over-year and above the national median of $376,200. Still, that’s more affordable than the $655,000 median sale price in New York, the top origin of people moving to Miami.
“While Sun Belt cities like Miami and Phoenix aren’t likely to lose their luster anytime soon, rising prices may soon render them slightly less popular for relocators,” Fairweather said. “Home prices – and the costs of other goods and services – are skyrocketing in a lot of these destinations precisely because they’re so popular with out-of-towners. Some homebuyers who prioritize affordability may start searching in less expensive northern cities.”
San Francisco, Los Angeles, New York, Seattle and Washington, D.C., were the top metros homebuyers looked to leave in January, unchanged from the fourth quarter. With a median sale price of roughly $1.4 million, San Francisco was the most expensive place to buy a home in the country. Los Angeles, New York and Seattle were close behind.