U.S. Homebuyer Migration Trends: Where People Are Moving and Why

Driven by remote work and affordability, over 31% of U.S. homebuyers are now looking to relocate to a different metropolitan area, a significant increase from pre-pandemic levels. Based on an analysis of user search data, the most popular destinations are affordable Sun Belt cities like Phoenix, Austin, and Las Vegas, while expensive coastal metros like New York and San Francisco see the largest outflows. This shift is fundamentally reshaping housing demand across the country.

What Is Driving the Increase in Relocation?

The primary catalyst for this migration surge is the widespread adoption of remote work. This flexibility has allowed buyers to prioritize factors like housing affordability and proximity to family over job location. In January and February of this year, 31.2% of Redfin.com users searched for homes outside their metro area, up from 26.1% during the same period in 2020. This represents the highest share since tracking began in 2017. As one economist noted, this trend signals a lasting change in mobility, with many Americans gaining the permanent freedom to live where they choose.

Which Cities Are the Top Destinations for Movers?

The analysis, which measures net inflow (a metric indicating more people looking to move into a metro than leave it), identified clear winners. The top destinations are predominantly in the Sun Belt and Florida, offering a combination of warmer weather and lower living costs.

The top five metros by net inflow are:

1. Phoenix, AZ
2. Austin, TX
3. Las Vegas, NV
4. Dallas, TX
5. Miami, FL

For example, the typical home in Phoenix sells for less than $350,000, a stark contrast to the $745,000 typical home price in Los Angeles, which is the top origin city for people moving to Phoenix. Based on our experience assessment, buyers from high-cost areas often have more cash on hand, creating competitive markets for local buyers in these destination cities.

Where Are People Moving From?

On the opposite end, expensive coastal cities are experiencing the largest net outflow. This means more homebuyers are searching to leave these areas than move in. The top five metros with the highest net outflows are:

• New York, NY
• San Francisco, CA
• Los Angeles, CA
• Washington, D.C.
• Seattle, WA

The net outflow from Washington, D.C. and Seattle has more than doubled compared to a year ago. While buyers are leaving these pricey hubs, they are often not moving far. The most common destinations are more affordable nearby areas. People leaving New York frequently search in Philadelphia, where the typical home price is $238,000 versus $590,000 in the New York metro.

What Does This Mean for Home Buyers and Sellers?

This migration data provides critical insights for anyone involved in the real estate market.

• For buyers in destination cities: Be prepared for a competitive market. Understanding these migration trends can help you gauge competition and potentially adjust your search strategy or offer terms.
• For sellers in destination cities: High demand from out-of-state buyers can lead to multiple offer situations. It's crucial to price your home based on a current market analysis.
• For those considering a move: Research is key. While affordability is a major driver, it's important to consider other factors like property taxes, job market stability, and lifestyle fit.

The key takeaway is that the ability to work remotely has permanently altered homebuyer priorities, making affordability and lifestyle primary drivers in housing decisions. This trend is likely to continue influencing market dynamics for the foreseeable future.