High Costs & Rates Push Wannabe Buyers Into Other Metros

A record amount of wannabe home buyers decided to look in other metro areas in the fourth quarter of 2022, according to the latest data from Redfin.

• A record one-quarter (24.6%) of Redfin.com users looked to move to a different metro area in the fourth quarter, up from 22.1% a year earlier and up from around 18% from before the pandemic.

Sun & Fun. Sacramento took the top spot with 5,700 net inflows in the fourth quarter of 2022. Las Vegas took the number two spot with 5,400 net inflows followed by Miami (+5,300), Tampa (+4,000), and Phoenix (+4,000).

• All regions were down from the 2021 levels with Miami seeing the biggest drop after taking the top spot with 9,500 net inflows.

If You’re Leaving San Francisco. San Francisco took the top spot when it came to outflows with 26,900 in 2022. Los Angeles took the number two spot with 23,100 outflows followed by New York City (+17,600), D.C. (+17,600), and Chicago (+6,300).

• Despite Cali taking the top spots, New York City was the top origin spot for four of the cities in Redfin’s top ten destination list. Los Angeles was the top origin spot for three cities while Chicago was the top spot for two.

BOTTOM LINE: While the South might not always be the top destination for those looking to move somewhere new. Zero southern states were in the top ten states with positive outflows.