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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 InflowNet 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 OutflowNet 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
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