San Francisco Is On The List Of The Top Seven Cities Homebuyers Are Seeking To Leave In The U.S.
Prospective homebuyers are striving to find affordable housing all over the country, even if they have to leave their home city to find it.
A new report released last week by real estate brokerage firm Redfin claims a record number of potential homebuyers are looking to move away from their current homes in the U.S.
The report also made a ranking of the cities where Redfin users were most likely to try to leave – San Francisco, Los Angeles, and New York were the cities that appeared most likely to attempt to leave.
As Taylor Marr, Redfin’s deputy chief economist, said in the report, “the average cost of a home in San Francisco or San Jose has risen to over $1 million,” he added. The monthly payment on a mortgage is going to be sky-high when you add today’s mortgage rates of 5% or more to it.”
As Marr pointed out, cities in large parts of the country are facing a problem more than ever before with a lack of affordability, since remote work has become an increasingly popular option across vast swaths of the country.
About 33% of Redfin users in the second quarter of 2022 searched for homes in new cities, compared with 26% in the second quarter of 2019, before the Covid-19 pandemic took hold.
United States: San Francisco Is On The List Of The Top Seven Cities Homebuyers Are Seeking To Leave In The U.S.
The following is a list of the top seven cities where potential homebuyers are seeking to move away from, according to Redfin’s report:
- San Francisco
- Los Angeles
- New York
- Washington D.C.
- Seattle
- Boston
- Detroit
The top ten of the list are rounded out by Denver, Chicago, and Minneapolis. These cities are collectively some of the largest in the country: Minneapolis is the only city on the list to have fewer than 650,000 people, according to the most recent U.S. Census Bureau data.
Approximately 2 million of Redfin’s users searched across over 100 metro areas across the country to compile its list of the top 100 metro areas.
As part of the study, a number of metrics including “net inflows” and “net outflows” were compiled, which means that the number of people who sought to enter a given city was compared with the number of people seeking to leave it.
According to the study, the cities with the largest net outflow are also the ones where people want to leave the most, according to the data.
Therefore, these cities with the most net inflow are likely to see a rise in home ownership in the coming months as a result of the net inflow:
- Miami
- Tampa, Florida
- Phoenix
- Sacramento, California
- Las Vegas
- Cape Coral, Florida
- San Diego
- North Port, Florida
- San Antonio
- Dallas
Each of the three states that have multiple cities on that list – Florida, California, and Texas – may be indicative of an American desire for warm weather, particularly in the middle of the summer. There are four of the top ten destinations in the country that are located in Florida.
There are plenty of people who search for houses on sites like Redfin without considering the possibility of buying one. In its analysis, the company claims that it excluded such searches from its analysis. According to Marr, Redfin’s data is usually in line with the U.S. Census migration patterns, a sign of how accurate the data is in most cases.
The data we gather is considered to be a strong leading indicator of actual moving decisions, he said.