Rising mortgage costs have prompted more homebuyers to move from metropolitan areas such as New York City and San Francisco to more affordable cities such as Phoenix, Miami and Las Vegas. , revealed in a new analysis.
24.2% of all homebuyers searching for a property on online real estate broker Redfin.com are looking for a home in a different metropolitan area than where they live. This number is also up from about 18% in 2019. According to the company’s search data.
With more people working remotely and interest rates on 30-year fixed mortgages nearly doubling last year to over 7%, potential homeowners are turning to cities as one way to lower their cost of living. exchange is mentioned.
Of the 100 metropolitan areas surveyed in the third quarter, the following 10 cities had the highest net inflows for property searches on Redfin’s website. Net inflow is measured as the number of people trying to move into the subway minus the number of people trying to leave.
- sacramento, california: 8,700
- Miami: 8,000
- Las Vegas: 7,000
- San Diego: 6,800
- Tampa, Florida: 6,700
- Phoenix: 5,200
- Cape Coral, Florida: 5,200
- Northport, FL – Sarasota: 5,200
- Dallas: 4,100
- Portland, Maine: 3,300
Warm destinations dominate the rankings, especially Florida, which has three metropolitan areas in the top 10.
Needless to say, the highest number of searches for properties in these cities come from people in cities with a higher cost of living, such as New York City, Chicago and Los Angeles, the study said.
The tendency to leave big cities is in line with Redfin’s city rankings, with the highest percentage of searches by local users who want to move.
- Detroit: 32%
- Denver: 31%
- Minneapolis: 29%
- New York City: 27%
- San Francisco: twenty four%
- Los Angeles: 20%
- Boston: 19%
- Washington DC: 18%
- Seattle: 17%
- Chicago: 16%
Homebuyers from large northern or coastal cities are usually most likely to relocate to smaller cities nearby, the study says. Many people leave Los Angeles and seek out Southwestern locations such as Las Vegas and Phoenix.
For research purposes, a person browsing Redfin looking for properties in another city counts as an immigrant. Migrants are given a weighted score based on the percentage of properties searched in cities they do not live in. A net immigration ranking was compiled based on the total number of immigrants. All data were compiled during his July-September period.