Residents in high-tax coastal market spent much of the second quarter looking for homes in major metro areas where the cost of living is more affordable, according to the latest Migration Report issued by Redfin
In an analysis of more than one million Redfin users searching for home in 80 metro areas between April and June, Redfin determined that 24 percent of home searchers looked to relocate to another metro area in the second quarter, compared to 21 percent during the same period last year. Among the markets recording the greatest percentage of net outflow were New York (36 percent (looking for homes in another metro), the San Francisco Bay Area (22 percent) and Los Angeles (16 percent). The places attracting the most people were mostly warm-to-hot weather metros where housing was relatively affordable and tax burdens were low, most notably Phoenix, Las Vegas and Miami.
"With home prices reaching new heights in many metro areas, it's no surprise people are continuing to move away from expensive metros in search of homeownership," said Taylor Marr, Redfin Senior Economist. "Last year's tax reform poured fuel on the fire. By capping mortgage interest and state and local tax deductions, there is an even greater incentive for homebuyers to consider moving to a lower-tax state."