A record 24.9% of Redfin.com users planned a move to a different metro area in January, as elevated housing costs drove up homebuying demand in relatively affordable markets. The typical monthly housing payment has risen 26% since the beginning of 2022 thanks to soaring mortgage rates, and as a result, prospective buyers from pricey metros such as New York City are headed to comparatively low-cost areas like Miami.
Half of the 10 most popular migration hotspots were located in Florida, with Miami claiming the top spot, followed by Sacramento, Calif., Las Vegas, and Phoenix, Redfin reports.
“A lot of buyers have flocked into coastal Florida from out of town over the last several months,” said Elena Fleck, a Redfin agent in Palm Beach, which is part of the larger Miami metro area. “Buyers moving in from places like New York and San Francisco are helping the local market recover from last fall’s housing downturn. They’re not nearly as fazed by high mortgage rates because homes here are so much less expensive than their hometowns, and they get larger lots, pools, nice weather and lower taxes.”
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