The Pandemic-Driven Migration Boom Is Waning, With the Share of Homebuyers Relocating at Lowest Level in 18 Months
30 December 2023 - 12:00AM
Business Wire
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
(NASDAQ: RDFN) — 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20231229882214/en/
Redfin Journalist Services: Ally Braun 206-588-6863
press@redfin.com
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