New data from Redfin indicates a decline in the share of homebuyers relocating, marking the lowest percentage in 18 months. Between September and November, only 23.9% of homebuyers opted for relocation, compared to 24.1% during the same period a year ago. This decline represents the first annual drop in relocation rates in Redfin's records dating back to 2017. It extends the trend of diminishing relocations for the third consecutive month, down from the record high of 26% during the summer.
Several factors contribute to this decrease. Strained affordability, characterized by high mortgage rates and substantial principal and interest payments, has discouraged many potential movers. Additionally, the widespread adoption of remote work during the COVID-19 pandemic enabled more people to consider relocating, but employer constraints on remote work have curtailed this trend.
The price rise in traditionally affordable areas, such as Florida and Boise, Idaho, has also contributed to the relocation slowdown. Some regions, like Sacramento and Las Vegas, have seen significant price increases, but remain attractive destinations for homebuyers. Redfin says home prices generally increased more in popular migration destinations than they did in expensive coastal metros during the pandemic, Sacramento, for instance, has experienced a remarkable 35% price increase since the pre-pandemic period, starkly contrasting the Bay Area's 8% rise.
Los Angeles has claimed the top spot for the first time in terms of metros where buyers are looking to leave, followed by San Francisco and New York. Notably, all 10 of the most popular migration destinations, based on net inflow of searchers, boast lower home prices than the most common origin of incoming buyers.
Spokane, Washington, debuted on Redfin's list of popular migration destinations, ranking 10th. The ranking is based on net inflow, indicating how many more Redfin.com users are interested in moving to an area than leaving.
The primary source of homebuyers moving to Spokane is Seattle, followed by Los Angeles and Portland, Oregon. Spokane boasts relatively low housing costs, with the typical home selling for $416,000, compared to $775,000 in Seattle.
Redfin's analysis is derived from over 2 million users who explored homes for sale across more than 100 metros. Despite these recent trends of declining relocations, it's worth noting that migration rates still exceed pre-pandemic levels, which were around 19%. Many Americans are still seeking affordability, as all of the top 10 migration destinations have lower prices than the most common origin for relocating buyers.
