Share of US homebuyers looking to move to a different metro area was 23.9%, down from 24.1% year ago and the lowest share in a year and a half; Los Angeles, California saw the highest outflows while Sacramento, California saw highest inflows: Redfin

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SEATTLE , January 2, 2024 (press release) –

Redfin reports the share of homebuyers moving to a different metro area is coming down from a peak as it becomes less feasible to work remotely

The share of U.S. homebuyers looking to move to a different metro area declined for the third straight month in November, dropping to 23.9%. That’s the lowest share in a year and a half, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. It’s down from 24.1% a year earlier–a tiny drop, but the first annual decline in Redfin’s records–and down from a record high of 26% over the summer.

Overall homebuying slowed in 2023 because it was the least affordable year on record and there was a severe supply shortage. There were 4% fewer Redfin.com users looking to move to a new metro in November than a year ago, compared with a 3% year-over-year drop for Redfin.com users searching within their home metro. The slightly bigger drop for house hunters looking to relocate explains why migrants are making up a smaller share of overall home searchers.

The portion of house hunters who are relocating to a new area is coming down for a few reasons. One, there’s less flexibility to work remotely as employers call workers back to the office. That means the flow of homebuyers moving from the Bay Area to Austin, TX or Boise, ID, for example, has slowed. Two, home prices generally increased more in popular migration destinations than they did in expensive coastal metros during the pandemic, making the case for moving a bit less compelling. For example, prices in Sacramento–the most popular destination this month–are up about 35% since before the pandemic, compared with an 8% increase in the Bay Area.

Still, the migration rate remains above pre-pandemic levels of around 19% as some Americans are still chasing affordability. All 10 of the most popular migration destinations have lower prices than the most common origin of buyers moving in.

Spokane, WA lands on list of popular destinations for the first time

Spokane has made it onto Redfin’s list of popular migration destinations for the first time on record, landing at number 10. Popularity is determined by net inflow, a measure of how many more Redfin.com users looked to move into an area than leave.

The number-one origin of homebuyers moving to Spokane, the second most populous city in Washington, is Seattle, followed by Los Angeles and Portland, OR. Spokane has comparatively low housing costs: The typical Spokane home sells for $416,000, compared to $775,000 in Seattle.

Top 10 Metros Homebuyers Are Moving Into, by Net Inflow

Net inflow = Number of Redfin.com home searchers looking to move into a metro area, minus the number of searchers looking to leave

Metro*

Net Inflow, Nov. 2023

Net Inflow, Nov. 2022

Top Origin

Top Out-of-State Origin

 

Sacramento, CA

5,100

7,000

San Francisco, CA

New York, NY

Las Vegas, NV

3,800

6,400

Los Angeles, CA

Los Angeles, CA

North Port-Sarasota, FL

3,700

3,700

New York, NY

New York, NY

Cape Coral, FL

3,700

4,000

Miami, FL

Chicago, IL

Salisbury, MD

3,600

2,000

Washington, D.C.

Washington, D.C.

Myrtle Beach, SC

3,600

2,800

Washington, D.C.

Washington, D.C.

Orlando, FL

3,500

3,300

New York, NY

New York, NY

Portland, ME

3,400

2,800

Boston, MA

Boston, MA

Nashville, TN

3,000

2,800

Los Angeles, CA

Los Angeles, CA

Spokane, WA

2,500

2,300

Seattle, WA

Los Angeles, CA

*Combined statistical areas with at least 500 users searching to and from the region in Sept. 2023-Nov. 2023

 

Los Angeles tops list of metros homebuyers are leaving for first time

More homebuyers are leaving Los Angeles than any other metro area in the country. That marks the first time on record it has been the number-one place homebuyers are leaving and the first time in over two years the Bay Area has dropped out of the number-one spot. The Bay Area comes in second, followed by New York. That’s based on net outflow, a measure of how many more Redfin.com users are looking to leave a metro than move in.

Migration out of both Los Angeles and the Bay Area has slowed since the height of the pandemic, when remote workers were fleeing both California metros in favor of more affordable places. But Los Angeles has surpassed the Bay Area because the flow out of the Bay Area has steadily slowed, while the flow out of Los Angeles has picked back up in recent months.

Top 10 Metros Homebuyers Are Leaving, by Net Outflow

Net outflow = Number of Redfin.com home searchers looking to leave a metro area, minus the number of searchers looking to move in

Metro*

Net Outflow, Nov. 2023

Net Outflow, Nov. 2022

Top Destination

Top Out-of-State Destination

 

Los Angeles, CA

26,100

30,300

Las Vegas, NV

Las Vegas, NV

San Francisco, CA

25,400

32,000

Sacramento, CA

Seattle, WA

New York, NY

24,900

20,700

Miami, FL

Miami, FL

Washington, D.C.

13,300

16,100

Salisbury, MD

Salisbury, MD

Seattle, WA

11,900

1,300

Spokane, WA

Phoenix, AZ

Chicago, IL

7,600

7,100

Cape Coral, FL

Cape Coral, FL

Boston, MA

5,000

6,100

Portland, ME

Portland, ME

Philadelphia, PA

3,000

1,300

Salisbury, MD

Salisbury, MD

Detroit, MI

2,100

3,400

Washington, D.C.

Washington, D.C.

Denver, CO

2,000

3,200

Chicago, IL

Chicago, IL

*Combined statistical areas with at least 500 users searching to and from the region in Sept. 2023-Nov. 2023

 

To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/housing-migration-trends-November-2023

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We also run the country's #1 real estate brokerage site. Our home-buying customers see homes first with same day tours, and our lending and title services help them close quickly. Customers selling a home in certain markets can 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. Customers who buy and sell with Redfin pay a 1% listing fee, subject to minimums, less than half of what brokerages commonly charge. Since launching in 2006, we've saved customers more than $1.5 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 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.


View source version on businesswire.com: https://www.businesswire.com/news/home/20231229882214/en/

Redfin Journalist Services:
Ally Braun
206-588-6863
press@redfin.com

Source: Redfin

Released December 29, 2023

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