Migration Hotspots Are Also Home to the Nation’s Highest Inflation Rates

Homes aren’t the only hot commodity seeing major price increases in Sun Belt states. According to Redfin, prices for goods and services are on the rise too, creating a more widespread financial burden for homeowners in migration hotspots. Phoenix recorded the highest inflation rate of all metros analyzed with a 10.9% year-over-year gain in the first quarter of 2022, and Atlanta wasn’t far behind with a 10.6% increase in prices.

On the contrary, cities like San Francisco, New York, and Washington D.C. are seeing declining populations as current residents move away, and as a result, their inflation rates are on the low end of the Consumer Price Index at 5.2%, 5.4%, and 6.7%, respectively.

“Not everyone in the country is experiencing inflation the same way,” said Redfin Deputy Chief Economist Taylor Marr. “It’s having an especially big impact in places like Tampa and Phoenix, which are attracting the most new residents and seeing double-digit increases in prices overall and even bigger increases in housing costs. We need to build more new homes in these Sun Belt hot spots to ease some of the competition for local homebuyers. That’s especially important as everyday costs like paying rent and buying food become more burdensome.”

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