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While house hunters continue to migrate at a higher rate than they did earlier on in the pandemic, migration has slowed its pace this past summer as life in the U.S. has somewhat returned back to normal.
KEY TAKEAWAYS
- Nationwide, roughly 30% of Redfin.com users looked to move to a different metropolitan area in July and August, down from 31.1% in the second quarter but up from up from 28.7% a year earlier.
- The relocation boom throughout the pandemic was fueled by record-low mortgage rates and the widespread shift towards remote work.
- While house hunters continue to migrate at a higher rate than they did earlier on in the pandemic, migration has slowed its pace this past summer.
- The dip in migration has had an impact on the housing market, with homebuyer competition, home-sales growth, and interest in second homes all on the decline. However, the housing market typically slows this time of year.
Nationwide, roughly 30% of Redfin.com users looked to move to a different metropolitan area in July and August, down from 31.1% in the second quarter but up from up from 28.7% a year earlier.
"We're not seeing the level of movement we saw at the end of 2020 and the start of 2021, but a lot of people are still looking to move to new cities," said Redfin lead economist Taylor Marr. "Worker turnover is one reason interest in relocating remains high. Scores of Americans are quitting their jobs in search of better salaries, benefits and flexibility. Once they find their next gig, people are often able to move for affordability or a better lifestyle."
The relocation boom throughout the pandemic was fueled by record-low mortgage rates and the widespread shift towards remote work. Scores of families left major cities in search of affordability and space, oftentimes seeking comfort in the more rural regions of the country where taxes are low and so is the cost of living. While house hunters continue to migrate at a higher rate than they did earlier on in the pandemic, migration has slowed its pace this past summer as life in the U.S. has somewhat returned back to normal.
The dip in migration has had an impact on the housing market, with homebuyer competition, home-sales growth, and interest in second homes all on the decline. However, the housing market typically slows this time of year.
In July and August, the most popular migration destinations were Miami, Sacramento, Phoenix, Las Vegas and Tampa. These metros are more affordable than major coastal cities , like New York and San Francisco, and feature warmer weather. This is mainly due to the fact homebuyers who work remotely have the freedom to prioritize affordability and space over their proximity to work.
“The influx of homebuyers into Las Vegas eased a little in August, but appears to have picked back up in September," said local Redfin real estate agent Cheryl Van Elsis. "August seems to be a little slow every year because it's so scorching hot here. People are also heading out on vacation and families are preparing to send their kids back to school."
More Redfin.com users were migrating out of San Francisco, Los Angeles, New York, Washington, D.C. and Boston than any other metro areas throughout July and August. Essentially, dense, pricey cities have seen the most residents depart, considering the fact remote workers want to leave expensive job centers for relatively affordable areas.
