People moved away from high-cost coastal markets in increasing numbers during the third quarter
The trend of moving to another city accelerated during the third quarter as people moved away from high-cost coastal markets in increasing numbers, according to the latest migration report from Redfin.
Redfin found that nationally, 25% of home searchers on its website looked to move to another metro area in the third quarter. The share is an increase from the 22% recorded during the same period in 2017.
"Rising mortgage rates are exacerbating affordability issues that have been driving people out of expensive coastal metros for the past few years," Redfin Chief Economist Daryl Fairweather said. "With rates no longer near historic lows, buyers are increasingly cost-conscious, seeking more affordable homes in low-tax states in the South and middle of the country."
Redfin recorded the quarter’s highest net outflows in San Francisco, New York, Los Angeles, Washington, D.C., and Denver.
Of all Denver users on Redfin, 24% were searching for homes in another metro, up from 17% during the same time period a year ago. Among those who were searching to move, approximately 23% were looking at more affordable metros within the state.
Sacramento, Atlanta, Phoenix, and Portland continue to attract the most people after growing throughout the past year. Redfin noted that the metros seeing the biggest inflows of new residents are big cities where home prices are still relatively affordable and job markets are strong. Median prices in the metro areas seeing the largest net inflow average around $150,000 below prices in the metro areas with the largest net outflow.
