Dive Brief:
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One in five Redfin home shoppers in the first quarter of 2017 searched primarily outside of their own metro area, the real estate listing website found in its first-ever quarterly Migration Report.
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The priciest markets had the highest outflow — or, the number of shoppers looking outside their metro area minus those looking to move into that area. San Francisco led, followed by New York; Los Angeles; Washington, DC; and Chicago.
- While California topped states in outflow, Sacramento had the highest net inflow of cities nationwide. Inflow was highest across the Sunbelt and the South, with Phoenix, Las Vegas, Dallas and Atlanta ranking high.
Dive Insight:
California was home to 10 of the hottest housing markets in March, led by the San Francisco Bay Area. But the area’s high home prices and low inventory could be taking their toll on residents, whose aspiration to own a home may outweigh their desire to remain in the area.
Migration out of Southern California due to housing costs is indeed on the rise, according to the Los Angeles Times. Still, it’s not nearly as high as it was during the housing recession, when outflow was triple the levels seen in 2016. Residents are moving farther from the coasts, either to inland cities within the state or to Arizona and other points east. This was also reflected in the Redfin analysis: San Francisco was the top origin city for inflow buyers into Sacramento.
The phenomenon is creating concern among employers, the LA Times noted, who worry that housing affordability will be a barrier to recruiting talent.
The state’s inventory shortage, which is about 100,000 homes below what’s needed annually to keep up with population growth, has led one California state senator to advocate for more market-rate housing.
