Roughly one in five (19.1 percent) house hunters looked to move from one part of the country to another in the first quarter. That’s up slightly from 18.9 percent a year earlier and the highest share in records dating back to 2021, according to a new report from Redfin.
A record portion of Americans are looking to relocate partly because of affordability pressures, Redfin said. Housing costs are near record highs because mortgage rates and sale prices remain stubbornly high, and inflation is pushing up the cost of living for other everyday expense.
That’s motivating people to move from expensive areas to more affordable areas. Orlando, Fla., for instance, is the most popular destination for relocating house hunters. The typical Orlando home costs just over $400,000, roughly half the cost of the typical home in New York, the most common origin for people to move there.
Another factor is “boomerang” migration, or homeowners moving away from places they moved to during the pandemic. For instance, about 1,700 more people left Charlotte, N.C., than moved in during the first quarter, compared to a net inflow of about 3,200 five years earlier. Austin, Texas, lost about 300 more residents than it gained during the first quarter, compared to a net inflow of 14,000 five years earlier.
And while the share of house hunters looking to relocate has risen to a record high, that doesn’t mean the number of relocators is at a record high. Overall homebuying activity is sluggish, so the total number of migrants is likely lower than it was back in 2021 or 2022, when a smaller share of a larger pool of buyers was looking to relocate.
Florida dominated the list of the most popular state destinations. Orlando was the most popular destination, followed by North Port, Miami and Cape Coral. Tampa came in sixth, after Las Vegas.
Half of the most popular destinations are in Florida, and all are relatively affordable, especially compared to the places people most commonly leave. All of the most popular destinations are in the Sun Belt, and all have warm, sunny weather.
As for relocators leaving expensive big cities, the Redfin report points out house hunters are leaving New York, Seattle and Los Angeles more than any other major metro. Next come three other major job centers: The Bay Area, Washington, D.C. and Chicago.
Expensive coastal cities and employment hubs usually top the list of places people leave as they chase affordability in other parts of the country. House hunters leaving Seattle, for instance, often seek out Phoenix, where buying a home costs about half the price.
Redfin pointed out migration from cities has slowed over the last five years. In New York, roughly 28,000 more people looked to move out than during the first quarter, down from 46,000 in 2022. The Bay Area had a net outflow of around 23,000, down from 74,000 in 2022.