[Guest Post] What 10 Cities Are Homebuyers Moving From And Where They are Moving

What 10 Cities Are Homebuyers Moving From And Where They are Moving

Guest Author: Sana Ahmad (Click here for Real Estate Listings)

According to an analysis from Redfin, 32.6% of its users looked to move to a new city during second quarter of 2022. It's an increase compared to the first quarter of 2022, when the figure was 32.3%. This is the largest share of searchers looking to relocate since Redfin began tracking this metric in 2017. Before the pandemic, ~26% of Redfin users searched for homes outside their own cities in a given quarter. Even as home prices continue to rise, or now stabilizing, more buyers than ever are looking to relocate.

Based on Redfin's analysis of searches on its platform, here are the top 10 cities buyers want to leave. 

1. San Francisco, California
2. Los Angeles, California
3. New York, New York
4. Washington, D.C.
5. Seattle, Washington
6. Boston, Massachusetts
7. Detroit, Michigan
8. Denver, Colorado
9. Chicago, Illinois
10. Minneapolis, Minnesota

From this list of ten cities, it can be noticed that many of the places people are eager to move are among the heavily populated and expensive metro areas in the U.S. For example, San Francisco saw the largest gap between people looking to leave and those looking to move in during the second quarter of 2022. 

“The typical home in San Francisco or San Jose now costs more than $1.5 million,” Redfin Deputy Chief Economist Taylor Marr said in a news release. “Add in today’s 5%+ mortgage rates and you have a sky-high monthly payment.”

 It’s no coincidence that rent prices in these cities are sky-high too. When both buying and renting are prohibitively expensive, moving to a cheaper city can be the best option. Redfin found that the top destinations for homebuyers looking to relocate include: 

1. Miami, Florida; 
2. Tampa, Florida; 
3. Phoenix, Arizona; 
4. Sacramento, California; 
5. Las Vegas, Nevada.

A June report from Freddie Mac backs up the idea and also added Dallas Texas, beyond Phoenix and Tampa. The median home price on loan applications in the places gaining the most out-of-towners was $128,000 lower than the median price in those buyers’ cities of origin, according to Freddie Mac. 

As realtor in Texas, I've worked with many clients who have relocated from North, East or West cost, even from international locations to Texas, particularly Dallas. Therefore, the best strategy for both buyers and sellers, is to closely work with realtors, who know and continue to understand the market dynamics. We are here to support you and I'm looking forward to helping my clients anyway I can.