This story is available exclusively to Business Insider subscribers.
Become an Insider and start reading now.
- A report by Redfin found that a record number of its users were looking to move to another metro in the second quarter of this year.
- The most homeseekers for nine of the top 10 markets came from either New York City, Los Angeles, or San Francisco.
- Phoenix, Sacramento, Las Vegas, Atlanta, and Austin were the five most popular destinations, showing a preference for affordable housing and inland markets.
- Visit Business Insider’s homepage for more stories.
As the coronavirus pandemic rages on, people are moving inland from expensive coastal cities in search of more space and cheaper prices.
According to a report by Redfin, 27.4% of users were looking to move to another metro area in the second quarter, a record percentage.
“The factors driving a surge in overall homebuyer demand — low mortgage rates and changes in what people are looking for in a home — are lighting a fire in people who were already considering a move to a different area,” Redfin’s economist Taylor Marr was quoted saying in the report.
Redfin looked at over one million users and 87 US metro areas to spot the latest migrational trend. In order to be included in the data, users had to have viewed at least 10 properties in a specific metro area, with homes in that metro area making up 80% of the user’s search history.
According to the results, Phoenix, Sacramento, Las Vegas, Atlanta, and Austin were the most popular destinations users looked to move to in the second quarter.
“People from New York, San Francisco and Los Angeles are driving homebuyer interest in the most popular destinations. One of those three metros clocked in as the top out-of-state origin for nine of the top 10 most popular destinations,” the report reads.
Phoenix, Sacramento, Las Vegas, Austin, and Atlanta all saw the highest net inflows of Redfin users looking to move. Phoenix had a net inflow of 9,428; Sacramento had a net inflow of 8,935; Las Vegas had a net inflow of 7,136; Austin had a net inflow of 6,770; And Atlanta had a net inflow of 6,680.
“We’re seeing tons of interest from clients moving to Austin from major cities on both coasts, particularly tech workers,” Austin-based Redfin agent Andrew Vallejo was quoted saying in the report. He said that buyers who can work remotely and who have found they don’t love being quarantined in an apartment building on the coast can afford to buy a house in Austin.
One main factor these five metro areas have in common is that they are all located inland and boast affordable housing. Take Phoenix, for example, where the median sale price for a home in June was $310,000. Of the Redfin users looking for homes there during the second quarter, most were from Los Angeles, where the median sale price in June was $655,000.
Infosnips Urbanites are fleeing to the suburbs
BofA points to the urban exodus trend as one of the reasons housing has been able to bounce back quickly amid the pandemic.
The shift to remote work that accompanied social distancing has been driving many urbanites to move to less dense areas — especially in the suburbs around New York City.
“Add in employers’ increasingly flexible remote work policies and the fact residents of many big coastal cities can’t fully enjoy their local amenities, and the people who have long wanted to live in a more affordable area or closer to family are incentivized to make the move soon,” Marr was quoted saying in the Redfin report.
Business Insider spoke to four real estate agents — in Westchester County, the Hamptons, Northern New Jersey, and Southern Connecticut — who all said they’ve seen a massive influx of buyers from the city.
An early June survey of 1,000 homeowners found 42% of those who bought during the pandemic reported entering into a bidding war. By the end of the month, June marked the second straight month that more than 50% of Redfin offers nationwide had been bidding wars.