One quarter of Redfin.com’s home searchers looked to move from one metro area to another in the third quarter of 2017, up from 22% during the same period last year. San Francisco, New York, Los Angeles, Washington, D.C. and Denver – some of the nation’s most expensive home markets - posted the highest net outflow rates over this time, while Sacramento, Atlanta, Phoenix and Portland have experienced the highest net inflow of new residents.
San Francisco posted the highest net outflow across all of Redfin at 28,143, with 21.9% of users in the city looking for homes elsewhere. Sacramento, Calif. was the top destination for these users. NYC came in second with a net outflow of 23,214 and 34.4% of users seeking a home elsewhere. Boston was the top destination for these users.
Redfin chief economist Daryl Fairweather attributes the growing migration to rising mortgage rates. “Mortgage rates are exacerbating affordability issues that have been driving people out of expensive coastal metros for the past few years,” Fairweather says. “With rates no longer near historic lows, buyers are increasingly cost-conscious, seeking more affordable homes in low-tax states in the South and middle of the country.”
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