{"id":162271,"date":"2023-11-13T15:45:42","date_gmt":"2023-11-13T22:45:42","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=162271"},"modified":"2023-11-13T15:45:44","modified_gmt":"2023-11-13T22:45:44","slug":"q3-2023-migration-report","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/q3-2023-migration-report","title":{"rendered":"Homebuyers Are Moving to These Cities in Droves\u2014Here Are Their Top 10 Destinations"},"content":{"rendered":"\n<p><span data-preserver-spaces=\"true\">Migration trends are shifting again. For the second month in a row, a record number of homebuyers are looking to move out of their state, according to the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/investors.redfin.com\/news-events\/press-releases\/detail\/992\/austin-once-a-migration-hotspot-is-losing-homebuyers-to\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">latest data<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;from Redfin.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In the third quarter of 2023, roughly 26% of homebuyers are looking to move to another part of the country, compared to 24% a year ago and 19% from pre-pandemic years. A lot of that is driven by&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/on-the-market-145\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">affordability<\/span><\/a><span data-preserver-spaces=\"true\">, says Redfin.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But while people are moving to more affordable areas, they are also moving to areas that are prime for natural disasters, which could ultimately\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/cities-in-these-areas-are-facing-higher-insurance-costs\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">increase insurance costs<\/span><\/a><span data-preserver-spaces=\"true\">.\u00a0<\/span><\/p>\n\n\n\n\n\n\n  <div class=\"lg:block\" x-data=\"{ ad_block_block_6552a5ff0038b: popAds(1) }\">\n      <template x-for=\"ad in ad_block_block_6552a5ff0038b\">\n        <a\n          :href=\"ad.linkURL\"\n          class=\"no-underline text-black\"\n          x-on:click=\"adClicked('https:\/\/www.biggerpockets.com\/blog\/q3-2023-migration-report', ad.sponsor, ad.title, ad.id, 'blockAdClicked', 'blockAd', '')\"\n          target=\"_blank\">\n          <div\n            class=\"py-4 border-b flex flex-col flex-nowrap text-sm border-t px-0 rounded-none\"\n            x-init=\"\n              analytics.track('blockAdLoaded', {\n                referrer: 'https:\/\/www.biggerpockets.com\/blog\/q3-2023-migration-report',\n                sponsor: ad.sponsor,\n                ad_title: ad.title,\n                ad_page_location: ''\n              })\n            \"\n            x-intersect:enter.once=\"adViewed('https:\/\/www.biggerpockets.com\/blog\/q3-2023-migration-report', ad.sponsor, ad.title, ad.id, 'blockAdViewed', 'blockAd', '')\">\n            <div><span class=\"text-xs text-slate-light block bg-slate-50 p-1 inline-block rounded-md\">Sponsored<\/span><\/div>\n            <div class=\"flex items-center text-sm space-x-4\">\n                <img :src=\"ad.imageURL\" :alt=\"ad.imageAlt\" class=\"h-10 w-10 object-cover rounded-full\">\n\n                <div clas=\"text-sm\">\n                    <span class=\"font-bold block\" x-text=\"ad.sponsor\"><\/span>\n                    <span class=\"text-slate\/80\" x-text=\"ad.description\"><\/span>\n                <\/div>\n            <\/div>\n\n            <div>\n                <span class=\"font-bold\" x-text=\"ad.title\"><\/span>\n                <p class=\"mt-2 text-slate\/80\" x-text=\"ad.body\"><\/p>\n                <span class=\"mt-2 text-themeBlue block mt-2 underline\" x-text=\"ad.linkTitle\"><\/span>\n            <\/div>\n          <\/div>\n        <\/a>\n      <\/template>\n  <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Where Homebuyers Are Moving&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">To determine where homebuyers are moving, Redfin looked at net inflow, measuring how many more Redfin.com users looked to move into an area than leave.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">So, where are homebuyers moving to? Sacramento, California; Las Vegas; and Orlando, Florida, were among the most popular destinations for those relocating. Florida was by far the most popular state overall, with half of the most popular destinations. Eight of the 10 most popular areas were located on the East Coast.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In general, the cities that homebuyers are moving to tend to be more affordable than the areas that they are moving from, which is a trend we\u2019ve seen for several years now.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-table is-style-regular\"><table><thead><tr><th>Rank<\/th><th>Metro<\/th><th>Net Inflow, Q3 2023<\/th><th>Net Inflow, Q3 2022<\/th><th>Top Origin<\/th><th>Top Out-of-State Origin<\/th><\/tr><\/thead><tbody><tr><td>1<\/td><td>Sacramento, CA<\/td><td>4,800<\/td><td>8,700<\/td><td>San Francisco, CA<\/td><td>Chicago, IL<\/td><\/tr><tr><td>2<\/td><td>Las Vegas, NV<\/td><td>4,500<\/td><td>7,000<\/td><td>Los Angeles, CA<\/td><td>Los Angeles, CA<\/td><\/tr><tr><td>3<\/td><td>Orlando, FL<\/td><td>4,000<\/td><td>3,000<\/td><td>New York, NY<\/td><td>New York, NY<\/td><\/tr><tr><td>4<\/td><td>Myrtle Beach, SC<\/td><td>3,800<\/td><td>3,200<\/td><td>Washington, D.C.<\/td><td>Washington, D.C.<\/td><\/tr><tr><td>5<\/td><td>North Port-Sarasota, FL<\/td><td>3,700<\/td><td>5,200<\/td><td>New York, NY<\/td><td>New York, NY<\/td><\/tr><tr><td>6<\/td><td>Portland, ME<\/td><td>3,500<\/td><td>3,300<\/td><td>Boston, MA<\/td><td>Boston, MA<\/td><\/tr><tr><td>7<\/td><td>Tampa, FL<\/td><td>3,400<\/td><td>6,700<\/td><td>New York, NY<\/td><td>New York, NY<\/td><\/tr><tr><td>8<\/td><td>Cape Coral, FL<\/td><td>3,300<\/td><td>5,200<\/td><td>Chicago, IL<\/td><td>Chicago, IL<\/td><\/tr><tr><td>9<\/td><td>Miami, FL<\/td><td>3,200<\/td><td>8,000<\/td><td>New York, NY<\/td><td>New York, NY<\/td><\/tr><tr><td>10<\/td><td>Salisbury, MD<\/td><td>3,100<\/td><td>2,500<\/td><td>Washington, D.C.<\/td><td>Washington, D.C.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Where Are Homebuyers Leaving&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">For the first time in Redfin\u2019s records, more homebuyers looked to leave Austin, Texas, than move in, with net outflows doubling from last year.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Austin has long been a magnet for out-of-towners, fueling high growth and high prices. By their peak in mid-2022, home prices had skyrocketed 75% more than pre-pandemic levels. Part of the surge in outflows has been caused by&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/the-real-world-impacts-on-remote-work-and-what-it-did-for-investors\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">remote workers<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;leaving as more companies are&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.cnbc.com\/2023\/09\/11\/90percent-of-companies-say-theyll-return-to-the-office-by-the-end-of-2024.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">call employees back to the office<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Other places where buyers are leaving include major cities like San Francisco, New York, and Los Angeles.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-table is-style-regular\"><table class=\"has-fixed-layout\"><thead><tr><th>Rank<\/th><th>Metro<\/th><th>Net Outflow, Q3 2023<\/th><th>Net Outflow, Q3 2022<\/th><th>Portion of Local Users Searching Elsewhere<\/th><th>Top Destination<\/th><th>Top Out-of-State Destination<\/th><\/tr><\/thead><tbody><tr><td>1<\/td><td>San Francisco, CA<\/td><td>25,800<\/td><td>37,700<\/td><td>24%<\/td><td>Sacramento, CA<\/td><td>Seattle, WA<\/td><\/tr><tr><td>2<\/td><td>New York, NY<\/td><td>25,300<\/td><td>23,500<\/td><td>30%<\/td><td>Miami, FL<\/td><td>Miami, FL<\/td><\/tr><tr><td>3<\/td><td>Los Angeles, CA<\/td><td>20,200<\/td><td>33,500<\/td><td>19%<\/td><td>Las Vegas, NV<\/td><td>Las Vegas, NV<\/td><\/tr><tr><td>4<\/td><td>Washington, D.C.<\/td><td>13,900<\/td><td>18,800<\/td><td>19%<\/td><td>Salisbury, MD<\/td><td>Salisbury, MD<\/td><\/tr><tr><td>5<\/td><td>Chicago, IL<\/td><td>4,800<\/td><td>5,600<\/td><td>16%<\/td><td>Milwaukee, WI<\/td><td>Milwaukee, WI<\/td><\/tr><tr><td>6<\/td><td>Boston, MA<\/td><td>4,300<\/td><td>9,300<\/td><td>21%<\/td><td>Portland, ME<\/td><td>Portland, ME<\/td><\/tr><tr><td>7<\/td><td>Hartford, CT<\/td><td>3,300<\/td><td>900<\/td><td>79%<\/td><td>Boston, MA<\/td><td>Boston, MA<\/td><\/tr><tr><td>8<\/td><td>Denver, CO<\/td><td>2,200<\/td><td>3,700<\/td><td>35%<\/td><td>Chicago, IL<\/td><td>Chicago, IL<\/td><\/tr><tr><td>9<\/td><td>Detroit, MI<\/td><td>2,000<\/td><td>4,500<\/td><td>26%<\/td><td>Grand Rapids, MI<\/td><td>Cape Coral, FL<\/td><\/tr><tr><td>10<\/td><td>San Diego, CA<\/td><td>1,800<\/td><td>inflow of 6,900<\/td><td>29%<\/td><td>Las Vegas, NV<\/td><td>Las Vegas, NV<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Why Homebuyers Are Changing States&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">While average home prices have dipped from their peak in 2022, they remain elevated. The average home price in the third quarter was $513,400, compared to $547,800 the same time a year ago, according to the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/fred.stlouisfed.org\/series\/ASPUS\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">latest Federal Reserve data<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Prices in large metropolitan areas are still higher, and many homebuyers are buying in places that are cheaper, Redfin says. It\u2019s a trend that\u2019s been going on for a while. According to<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.attomdata.com\/news\/market-trends\/home-sales-prices\/attom-q3-2023-u-s-home-affordability-report\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">&nbsp;real estate data provider ATTOM<\/span><\/a><span data-preserver-spaces=\"true\">, 99% of real estate areas are unaffordable for Americans who earn the average annual national wage of $71,214 a year.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Meanwhile,&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.freddiemac.com\/pmms\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">mortgage rates<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;are still at levels not seen since the early 2000s, pushing borrowing costs up even further. While the Fed has&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/fomc-meeting-november-2023\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">paused rate hikes<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;for now, it indicated in its official statement that it was unsure how the market would respond to its policies or when the effects would be felt.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">However, not all homebuyers are moving because of affordability. Some simply want more space.&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.redfin.com\/news\/housing-migration-trends-august-2023\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Alison Williams<\/span><\/a><span data-preserver-spaces=\"true\">, a Redfin agent in Sacramento, said in the Redfin press release that most of the buyers she is working with are from the Bay Area and \u201cwant a bigger home and better quality of life.\u201d Some are even buying&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-to-rent-your-house\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">houses to rent out<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;before moving in later on, she added.&nbsp; &nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Bottom Line&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">A shift in buying dynamics could be good news for real estate investors looking to get into certain areas. For example, the median home price in Austin has fallen about 5% year over year due to people leaving. And with the Fed not likely to raise rates again until 2024, mortgage rates should (fingers crossed) remain steady, if not decline slightly.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">For those looking to buy a place to rent out, it might make sense to look outside large metro areas to places with a cheaper cost of living.<\/span><\/p>\n\n\n\n<div id=\"hero-block_62df1a82bfc88\" class=\"first:mt-0 hero-block py-4    has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">On the Market Podcast <\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:16px\">Learn from Dave Meyer and his expert panel about the trends, data, and headlines shifting today\u2019s economy so you can invest and build wealth with confidence.<\/p>\n\n\n\n<div id=button-custom-event-block_654009d806887 class='button-custom-event'>\n      <a href=\"https:\/\/link.chtbl.com\/OTM\" x-on:click=\"window.analytics.track(&#039;OTM Podcast Blog CTA Click&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/q3-2023-migration-report&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-slate-dark-background-color has-text-color has-white-color\" target=\"_blank\" rel=\"noopener\">Listen Now<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\" first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  shadow-xl rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/05\/On-The-Market-scaled-e1660859845837.jpg\" alt=\"\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Since the early days of the pandemic, buyers have been moving in droves across the country. Here&#8217;s what the latest data says about their choices now.<\/p>\n","protected":false},"author":613681,"featured_media":162275,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-162271","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-trends"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/162271","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613681"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=162271"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/162271\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/162275"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=162271"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=162271"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=162271"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}