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A record-high 25.1% of U.S. homebuyers are now looking to purchase a home in a different metropolitan area than where they currently live. This trend, identified in a February 2023 analysis, marks a significant shift in buyer behavior, driven primarily by housing affordability challenges. While overall home search activity has declined, the proportion of buyers seeking to relocate to more affordable regions has reached its highest level since records began in 2017. Key drivers include persistently high mortgage rates, elevated home prices, and the increased flexibility of remote work.
High housing costs are the primary factor pushing buyers to consider moving to a new metro. Although the median U.S. home-sale price has seen a rare annual decline, it remains near record highs. Coupled with mortgage rates that are significantly higher than a year ago, monthly housing costs have surged nearly 20%. For buyers in expensive coastal job centers, relocating to a more affordable area can substantially offset these costs.
For example, a buyer moving from Los Angeles to Las Vegas could purchase a comparable home for roughly half the price. Furthermore, relocating buyers often have compelling, non-negotiable reasons for their move, such as a higher-paying job or the desire to be closer to family. These life events make them less likely to be deterred by high mortgage rates compared to buyers who are simply considering a move within the same city.
Affordable Sun Belt metros continue to be the most sought-after destinations for Americans on the move. The top destinations in February, based on net inflow (a measure of how many more people are looking to move into an area than leave), were:
These areas are popular due to their comparatively lower cost of living and warm weather. The typical home in these destinations remains less expensive than in the metros buyers are leaving. For instance, the median home sale price in Phoenix was $425,000, compared to $710,000 in Seattle, a leading origin city. This affordability gap creates a strong incentive, even in a high-rate environment.
The list of metros with the highest net outflow—meaning more people are looking to leave than move in—is dominated by expensive coastal job centers. In February, the top origins for relocating buyers were:
The trend of leaving these high-cost areas for more affordable ones intensified with the rise of remote work, which gave many Americans the freedom to choose where they live based on lifestyle and cost rather than proximity to an office.
A practical analysis of your budget is the first step. Compare the median home price in your current city to those in potential destinations. Use online mortgage calculators to understand how today's rates impact your potential monthly payment in each location. Research the long-term costs. Beyond the sale price, investigate property taxes, insurance costs, and homeowners association (HOA) fees in a new area, as these can vary significantly and affect overall affordability. Consider your reason for moving. If you are relocating for a job or family, your timeline may be less flexible. However, if you are primarily motivated by affordability, you may have more time to wait for favorable market conditions.
