Homebuyers Are on the Move as Housing Affordability Diminishes—Here’s Where They’re Going
Historically high home prices paired with soaring mortgage rates are motivating homebuyers to relocate to find affordable housing, but as the economy softens in a market correction, migration could begin to slow nationwide, Redfin reports. A record high 24.2% of all homebuyers planned a move to a different metro area in the third quarter of 2022, up from 23.3% in the second quarter and 21.6% a year ago.
Sacramento was the most popular destination for relocating Redfin.com users, followed by Miami, Las Vegas, San Diego and Tampa, which all saw the largest net inflow in Q3 2022. The majority of buyers moving into cities like Sacramento are fleeing pricier metros like San Francisco, where median sale prices are up to a staggering $1.5 million.
Sunny, relatively affordable areas are typically the most popular relocation destinations. Take Sacramento, for example. While its $560,000 median sale price is higher than the national average, it’s a fraction of the $1.5 million median price in nearby San Francisco, the most common origin of newcomers to Sacramento. New York, where the typical home costs $680,000, is the most common origin for buyers moving to Miami ($475,000 median sale price). Nine of the 10 most popular destinations have more affordable home prices than their top origins (Cape Coral, FL, with Chicago as the most common origin, is the exception).