Sunbelt Cities Remain Top Destinations Despite Rising Home Prices

Miami and other Sunbelt locations, including Phoenix and Tampa, remain the country’s top destinations this year despite surges in home prices, says online real estate brokerage firm Redfin.

In Miami, the number one place to move to, especially for New Yorkers, said Redfin, the typical home sold for $475,000 in April, up from $330,000 two years ago, shortly after the Covid-19 pandemic hit the United States.

In number-two ranked Phoenix, Ariz., the typical home sold for $480,000 in April, up from $305,000 two years ago, said the company. Phoenix was a popular destination for people from Los Angeles, Redfin said.

In number-three ranked Tampa, Fla., another popular destination for New Yorkers, the typical home sold for $370,000 in April, up from about $290,000 two years ago, says Redfin.

Redfin says that home prices have surged and priced out many would-be buyers, a dynamic that’s being brought on rising mortgage rates.

Thirty-year fixed mortgage rates were about 3% a year ago compared to over 5% today.

“A lot of people are moving to Florida for the price point, beaches and quality of life, especially since the pandemic started,” said Eric Auciello, a Redfin manager in Tampa. “For a buyer who sold their home in a place like New York for a million dollars, Tampa is affordable.

He continued, “They can get a nice home in a desirable neighborhood for around $550,000. But for locals looking in the $300,000 to $400,000 price point, there’s next to nothing for sale. Locals are turning to condos or moving to more affordable rural areas.”