According to Redfin, an increasing number of homebuyers are bidding farewell to the bustling streets of San Francisco, New York, and Los Angeles in pursuit of more affordable dwellings. The trend of US migration patterns reveals a significant net outflow, indicating that more Redfin.com users are looking to leave these metros than to move in.
The allure of the coastal job centers has been waning, with the high cost of living driving residents to seek greener pastures. In the quest for more affordable places to call home, prospective buyers are turning their backs on these traditionally sought-after locations. Ironically, the most common destinations for these migrating homebuyers often boast pricier homes than the places they’re leaving behind.
Homebuyers Flock to Affordable Metros for Housing
San Francisco, a city famous for its iconic Golden Gate Bridge and thriving tech scene, leads the exodus with a net outflow of 25,800 users in Q3 2023, compared to 37,700 in the same period last year. This 24% net outflow means that nearly a quarter of Redfin.com home searchers in the city are looking to leave. The top destination for these San Francisco escapees is Sacramento, California, with Seattle, Washington, being the favored out-of-state destination.
New York, the city that never sleeps, is witnessing a similar trend with 25,300 users departing in Q3 2023, up from 23,500 the previous year. A whopping 30% of home searchers in the Big Apple are looking elsewhere. Miami, Florida, emerges as the top destination for these New Yorkers, both in-state and out-of-state.
Los Angeles, often seen as the epitome of the California dream, has also seen a substantial exodus. In Q3 2023, 20,200 users left the City of Angels, compared to 33,500 in the same period last year. This translates to a 19% net outflow, and Las Vegas, Nevada, is the top destination for these departing residents, both from within California and out-of-state.
The Nationwide Trends: US Migration Patterns by Numbers
The US migration patterns don’t stop at these three major cities. The appeal of more affordable housing options is drawing in residents from other major metros across the country. In Washington, D.C., 13,900 residents left in Q3 2023, up from 18,800 the previous year. Salisbury, Maryland, emerges as the preferred destination for these departing Washingtonians.
Chicago, often called the Windy City, has witnessed 4,800 residents leaving in Q3 2023, up from 5,600 the previous year. Milwaukee, Wisconsin, is the preferred destination for these Chicagoans, offering more budget-friendly housing options.
Boston, Massachusetts, another expensive urban center, saw 4,300 residents departing in Q3 2023, up from 9,300 the previous year. Portland, Maine, beckons these departing Bostonians with its charm and affordability.
Farther east, Hartford, Connecticut, saw 3,300 residents leaving in Q3 2023, a substantial increase from 900 in the same period the previous year. Boston, Massachusetts, once again becomes the top destination for these migrating homeowners.
In Denver, Colorado, 2,200 residents left in Q3 2023, up from 3,700 the previous year. Chicago, Illinois, is the preferred destination for these Denver escapees, offering a change of scenery along with cost savings.
Even Detroit, Michigan, is part of this migration pattern, with 2,000 residents leaving in Q3 2023, up from 4,500 the previous year. Grand Rapids, Michigan, and Cape Coral, Florida, are the top destinations for these departing Detroiters.
Lastly, San Diego, California, saw 1,800 residents leaving in Q3 2023, but interestingly, there was an inflow of 6,900 residents during the same period. Las Vegas, Nevada, remains a popular destination for both departing and incoming San Diegans.
Insightful Analysis US Migration Pattern
This migration trend is based on a comprehensive analysis by Redfin, involving approximately two million Redfin.com users who browsed for sale homes online across more than 100 metro areas from July 2023 to September 2023. To gauge the share of homebuyers looking to relocate from one metro to another, Redfin calculates the portion of overall home searchers that are migrants.
This migration pattern indicates a shift in priorities for homebuyers across the United States. The quest for affordability is driving them to seek new horizons and explore housing markets that offer greater value for their investment. Whether it’s the allure of Sacramento’s thriving community, Miami’s vibrant culture, or the charm of Portland, Maine, these migrating homebuyers are reshaping the landscape of American housing markets.
Summary: The US migration patterns are reshaping the housing market landscape, with homebuyers leaving expensive coastal metros in favor of more affordable places. Redfin’s analysis reveals the extent of this phenomenon, with cities like San Francisco, New York, and Los Angeles experiencing substantial net outflows of residents seeking greener pastures.
As the quest for affordability continues to drive these migration patterns, it’s clear that the American dream of homeownership is being redefined. Whether it’s the allure of Sacramento’s thriving community, the vibrant culture of Miami, or the charm of Portland, Maine, these migrating homebuyers are changing the face of the housing market in the United States.
Source:
- https://www.redfin.com/news/housing-migration-trends-q3-2023/
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