Record Share of Homebuyers Relocate for Affordability

A record high 32.6% of Redfin users searched for homes outside of their metro areas in the second quarter of 2022 as surging housing costs make cities like San Francisco or San Jose unaffordable and destinations like Tampa and San Antonio more attractive. Buyers relocating for affordability are heading to Florida in droves both for its sunny weather and relative affordability.

Miami was the most popular migration hotspot for the first and second quarters of the year, followed by Tampa, Phoenix, Sacramento, and Las Vegas, Redfin reports. The Sun Belt is seeing the highest net inflow and the largest share of home searches in the midst of a growing nationwide affordability crisis.

“The typical home in San Francisco or San Jose now costs more than $1.5 million. Add in today’s 5%-plus mortgage rates and you have a sky-high monthly payment,” said Redfin Deputy Chief Economist Taylor Marr. “Those factors, along with more companies giving employees the permanent flexibility to work remotely, are driving a larger portion of buyers to consider homes in other parts of the country. Someone who would have to stretch beyond their budget in Los Angeles may be able to comfortably afford a home in Phoenix or San Antonio.”

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