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The rise of remote work is fundamentally reshaping the U.S. real estate landscape, accelerating a migration from expensive coastal hubs to more affordable inland areas. Based on an analysis of over two million users, 28.7% of home searchers looked to move to a different metropolitan area in July and August 2020, the highest percentage on record. This trend is fueled by buyers using their coastal-city salaries to win bidding wars in markets like Sacramento, Austin, and Tampa, consequently driving up local home prices.
The COVID-19 pandemic has permanently altered housing priorities. With remote work becoming a long-term reality for many companies, proximity to a physical office is less critical. Homebuyers are now prioritizing more space for home offices, larger yards, and overall affordability. As Redfin chief economist Daryl Fairweather notes, “People who could barely afford to rent a one- or two-bedroom apartment in New York or San Francisco are finding that with their newly remote job, they can buy a nice sized house in the most desirable part of a place like Sacramento, Tampa or Las Vegas.” Their higher salaries allow them to outbid local buyers, creating competitive markets in these destination cities.
The data reveals a clear pattern of migration towards sunbelt and inland cities known for their relative affordability and warmer climates. The top destinations are characterized by median home prices significantly lower than those in major coastal metros.
| Metro Area | Net Inflow Rank | Median Home Price (Aug 2020) | Year-over-Year Price Increase |
|---|---|---|---|
| Sacramento, CA | 1 | $468,000 | 11.4% |
| Austin, TX | 2 | Under $475,000 | Data Not Specified |
| Phoenix, AZ | 3 | Under $475,000 | Data Not Specified |
| Las Vegas, NV | 4 | $310,000 | 7.8% |
| Atlanta, GA | 5 | Under $475,000 | Data Not Specified |
Sacramento led the nation with the highest net inflow (meaning more people looking to move in than leave), followed by Austin, which broke into the top three for the first time. In these top destinations, about half of all home searches on Redfin.com were from users outside the metro area.
The primary sources of this migration are the nation's most expensive coastal cities. New York, San Francisco, and Los Angeles consistently top the list of metros with the highest net outflow (more people looking to leave than move in). The motivation is straightforward: the pursuit of greater value. For example, the median home price in San Francisco was approximately $1.5 million in August 2020, compared to under $475,000 in Austin. Buyers can trade a small, costly apartment for a more spacious single-family home without compromising their job security, thanks to remote work policies.
This influx of remote workers is having a tangible impact on destination markets. It contributes to a rise in bidding wars and accelerating home price appreciation. For instance, local Redfin agent April Miller in Austin observed, "The influx of people coming from other areas has contributed to an uptick in bidding wars, and most listings with multiple offers go to out-of-town buyers." While this is a boon for sellers, it presents challenges for local buyers who may find themselves priced out of their own market.
The key takeaways for prospective buyers and sellers are:
If you are considering a move, understanding these migration patterns is essential for making an informed decision about where and when to buy or sell.
