As mortgage rates continue to climb in expensive coastal cities, more and more people are migrating to affordable markets, according the latest data collected from Redfin.
According to Redfin’s latest migration analysis, in the third quarter of 2018 people continued to relocate from costly coastal markets like San Francisco, New York, Los Angeles and Washington, D.C. Now, cities like Atlanta, Phoenix and Sacramento are enticing thousands of potential new buyers due to their affordability.
The report revealed that across the country, 25% of home searchers looked to move to a new non-coastal metro in Q3, citing affordability as a driving factor.
“Rising mortgage rates are exacerbating affordability issues that have been driving people out of expensive coastal metros for the past few years,” Redfin Chief Economist Daryl Fairweather said.
In these cities, the exodus of residents is larger than those looking to call them home.
(The graph below shows the net outflow of residents year over year.)
Throughout the past year, Sacramento, Atlanta, Phoenix, Portland and San Diego have attracted the biggest inflow of residents searching for “relatively” affordable homes and economies.
In these cities, median home prices average around $150,000 below prices in metro areas with the largest net outflow, according to the report.
(The graph below shows the net inflow of residents year over year.)
In order to calculate net inflow and outflow, Redfin took the number of users looking to leave the metro area and subtracted the number of users looking to move to the metro area from another metro area.