Long-distance relocation is gaining momentum in the U.S. housing market, suggesting more Americans are willing to venture farther afield in search of affordability, warmer weather, or a different lifestyle, even as overall home sales remain sluggish.
In Q4 2023, 18.8% of Redfin users searching for homes cast their nets across state or regional lines. This marks a notable increase from 17.9% a year earlier and a sharp rise from 15.9% approximately five years ago.
Analysts attribute the uptick partly to easing mortgage rates and a still-prevalent remote work landscape. This flexibility allows buyers to uproot without changing jobs. However, the primary driver may be what home hunters are fleeing: expensive coastal hubs like Los Angeles and New York continue to see an outflow of potential buyers.
“We have seen people moving to Tennessee in droves — especially Nashville and its surrounding areas,” said Aaron Glicken, a Redfin Premier agent based in Nashville. “Compared to the West Coast, where many of them are moving from, we have relatively low housing costs and lower taxes.” In one upscale Nashville enclave, more than half of recent buyers migrated from California, he said.
Sun Belt Surges, Big Cities See Exodus
Sacramento and Las Vegas topped the list of destinations for relocating house hunters. Several Florida metros, including Cape Coral, Miami, and Orlando, followed closely. All these markets are seen as more affordable alternatives to high-cost metropolitan areas.
Conversely, Los Angeles and New York led the exodus list. Seattle, the Bay Area, and Chicago also lost ground as homebuyers seek more affordable housing and, in some cases, slower lifestyles.
Florida remains the most popular state overall for relocators, attracting about twice as many prospective buyers as the next most popular states, South Carolina and Arizona. However, even the Sunshine State has cooled from its pandemic-era boom.
Remote Work, Affordability Drive Housing Choices
Economists say the renewed interest in cross-country moves underscores changing priorities among buyers. Fueled by remote work and frustrated by high prices in gateway cities, they are willing to prioritize value. However, analysts warn that this snapshot does not necessarily indicate an outright boom in long-distance moves, but rather that more shoppers are considering it.
For markets outside the traditional coastal powerhouses, this data offers a lifeline. “People are deciding, ‘If I’m going to buy, I might as well get something that does not consume my paycheck,’” said one real estate observer. “That is putting unexpected interest on metros that used to be on the fringe.”
