A Record 25% of U.S. Homebuyers Are Relocating, Driven by Affordability and Remote Work

A record 25% of U.S. homebuyers are now looking to purchase a property in a different metropolitan area, a trend fueled by high housing costs and the permanence of remote work. This analysis, based on recent search data, reveals that affordability is the primary driver of this migration, with markets like Miami, Sacramento, and Las Vegas emerging as top destinations for those leaving expensive coastal cities.

The typical monthly housing payment in the U.S. is now 26% higher than it was at the start of 2022. This surge, combined with near 20-year high mortgage rates, has created a significant affordability crisis. For the growing cohort of remote workers, this economic pressure has made relocating to more affordable regions a financially strategic move.

Why Are a Record Number of Homebuyers Relocating?

The primary reason for the increase in relocation is the ongoing affordability challenge. While overall home sales have declined due to high mortgage rates, the share of active buyers choosing to move to a different metro has reached a new peak. This is because buyers from high-cost areas can achieve significant savings.

For example, a buyer moving from Los Angeles, where the median home price is approximately $800,000, to Las Vegas or Dallas, where prices are roughly half that, can dramatically reduce their monthly mortgage payment. Furthermore, many popular destination markets that saw rapid price appreciation in 2022 are now experiencing some of the fastest price corrections, creating new opportunities for value.

Which Metros Are the Most Popular Destinations?

Miami reclaimed its status as the nation's top migration destination in January, a position it last held in August. Popularity is measured by net inflow, which is the number of people looking to move into a metro minus the number looking to leave. Florida dominated the list, with five metros in the top ten: Miami, Tampa, Cape Coral, Orlando, and North Port-Sarasota.

While Florida home prices are above the national median of $383,000, they remain substantially lower than the Northeastern and West Coast markets that buyers are leaving. The state also offers a lower overall cost of living, partly because it has no state income tax. As noted by a local real estate expert, buyers from expensive cities are less affected by high mortgage rates because they are trading down to a lower price point while gaining amenities like larger properties and favorable weather.

After Miami, the most popular destinations were mainstays like Sacramento, Las Vegas, and Phoenix. These areas consistently attract buyers from coastal California who seek larger homes for less money in warm climates.

Where Are Most Homebuyers Moving From?

The metros with the highest net outflow—meaning more people are looking to leave than move in—are predominantly expensive coastal cities. San Francisco and Los Angeles topped the list, followed by New York, Washington, D.C., and Chicago. This trend of leaving high-cost urban centers, which began accelerating during the pandemic, continues due to the flexibility of remote work.

It is important to note that the volume of people leaving these areas has decreased compared to a year ago, reflecting the broader slowdown in the housing market. For instance, Seattle's net outflow fell dramatically from approximately 19,000 a year ago to about 3,400 in January, indicating that the feverish pace of relocation has cooled slightly amidst higher interest rates.

Key Takeaways for Homebuyers Considering a Move

Based on our experience assessment of these migration trends, relocating can be a powerful tool for achieving homeownership.

• Evaluate Total Cost of Living: When comparing locations, look beyond the sale price. Factor in property taxes, insurance costs, and state income tax liabilities. A higher-priced home in a state with no income tax might offer a better long-term financial picture.
• Focus on Long-Term Value: Target markets that offer not just immediate affordability but also strong economic fundamentals, such as job growth and population trends, which can help protect your investment.
• Understand the Local Market Dynamics: Popular migration destinations can have volatile markets. Work with a local agent who understands whether a area is experiencing a temporary correction or a more fundamental shift.

For buyers with remote work flexibility, targeting more affordable metropolitan areas can be the most effective strategy to combat today's high housing costs and secure greater value.