The top 10 cities home buyers want to relocate to this spring

April 7, 2022 11:03 AM

A great migration is sweeping the nation’s housing markets as home buyers seek relief from the growing affordability crisis.

The era of remote work has enabled unprecedented flexibility and prospective homebuyers are taking advantage, according to Redfin. The brokerage reported 32.3% of its users looked to relocate in January and February, chasing affordable locales amid record home prices and sharp mortgage rate hikes. That relocation search rate is up from 31.5% in Q1 2021 and 26% in 1Q 2020, which was the last quarter before the coronavirus pandemic affected the market.

San Francisco residents were the nation’s most eager to move, followed by those living in the country’s largest and pricest metros in Los Angeles, New York, Washington, D.C. and Seattle. Younger homebuyers may be looking inward, but the East and West Coasts, and Texas, remain popular destinations, with buyers finding more bang for their buck in trendy, and sometimes overlooked, markets.

Redfin sampled 2 million users who searched for homes across 111 metro areas in January and February, counting homebuyers who viewed at least 10 homes and 80% of their searches in new metros. The brokerage then ranked the top relocation markets by net inflow, or how many Redfin users looked to move into the markets versus leave. The top out-of-state origin is listed if the majority of prospective relocating homebuyers come from within the same state.

Skyline and reflections of midtown Atlanta, Georgia in Lake Meer from Piedmont Park.

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Atlanta, Georgia

February home price: $395K (15.8% year-over-year growth)
Portion of searches from users outside the metro (2022): 20.4%
Top origin: New York, New York

Expert: Jake McPherson, assistant vice president branch manager at First Community Mortgage. McPherson grew up in the region and has worked in the industry for six years.

Why do homebuyers want to move to Atlanta?

“Atlanta’s a very transient city. It’s large but you don’t find many people that are from Atlanta living in Atlanta. Because of that, there is a good sense of homeyness to it. On my street alone I’ve got people from 15 different states that are all relatively new to the area. One thing you get here compared to the coasts is you get all the seasons. Because of all the trees you get a really pretty fall and spring. Having the (MLB) Braves, the (NBA) Hawks, the (NFL) Falcons, even our soccer team (the MLS’ Atlanta United) being really good makes it fun year-round.”

“I’m seeing more homebuyers from the West Coast than I’ve seen from the North, a lot of Californians. It’s probably 25% that move because of some sort of family member in the Georgia area, maybe 25% work-related, the movie business here is big enough that it pulls people out here. The other 50% move for a change. In today’s generation where you can really work remote, it works out.”

River Walk in San Antonio Texas.

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San Antonio, Texas

February home price: $268K (14% year-over-year growth)
Portion of searches from users outside the metro (2022): 44.7%
Top origin: Austin, Texas
Top out-of-state origin: Los Angeles, California

Expert: Scott Myers, owner of Scott Myers Realtors. Myers has owned the company in San Antonio for 43 years.

Why do homebuyers want to move to San Antonio?

“There’s a lot of people coming in from California and if you ask them why they’re moving, it’s not unusual for many of them to say that they like the conservative politics. The Bay Area’s bringing a lot of buyers, maybe Los Angeles [brings] a few more [buyers] for essentially the same reason, a lower cost of living and similar lifestyle to what they’re used to. There’s a good climate, generally speaking. We have always had a good local economy.”

“There’s a lot of people that are cashing out of their big profit in Austin and coming down here because they can come out well, property taxes and insurance that goes along with Austin is a lot. It’s only an 80-mile drive from San Antonio to Austin and it could be maybe an hour’s drive."

Dallas, Texas

February home price: $404K (4.4% year-over-year growth)
Portion of searches from users outside the metro (2022): 25.9%
Top origin: Los Angeles, California

Expert: Drew Brenner, senior loan originator at Willow Bend Mortgage. Brenner has worked in the Dallas region for 11 years.

Why do homebuyers want to move to Dallas?

“Dallas is centrally located. A lot of companies are still coming in here, and a lot of smaller companies are moving to the North Dallas area. The cost of living is still at least somewhat decent up here. It’s not super cold, it’s not super hot. Dallas is very eclectic, we have stuff for everyone. Some people think Dallas is a little more snooty and honestly, most of it isn’t.”

“I’m seeing a lot of out-of-state buyers, definitely a lot of people coming from California, they definitely have a lot of cash on hand. Home prices are going up fairly quickly because of all the people coming in, it’s definitely driving our market, the bidding wars have been quite crazy.”

North Port, Florida

February home price: $366K (43.5% year-over-year growth)
Portion of searches from users outside the metro (2022): 66.4%
Top origin: Chicago, Illinois

Expert: Daniel Hughes, broker owner of Bay Port Lending. Hughes was born and raised in the region and has worked in the area for 10 years.

Why do homebuyers want to move to North Point, Florida?

“You’ve got a small community of great beaches, affordable homes, nice amenities, high-ranking school systems. Every year we’re gaining snowbirds that aren’t going back home. We’re about 30 miles from Siesta Key. We’re a very tourist-centric community. There’s a lot of availability to build here, there's a lot of room to develop here. People were going to Sarasota for the beach, they moved down to Venice, Venice got expensive and now they discovered North Port, which is only a 30-minute drive to any beach.”

“Boston, New York, New Jersey, Michigan, a lot of people that snowbird here already knew of this little place for a long time. We had people selling homes in New York for $500K to $800K, clearing $400K and buying a house twice as big. We have banks, credit unions and so forth but the independent broker community is very low here. I don’t have a lot of competition like I would in big cities, that’s a big benefit to me as an industry professional to stay.”

Cape Coral, Florida

February home price: $381K (30% year-over-year growth)
Portion of searches from users outside the metro (2022): 67.3%
Top origin: Chicago, Illinois

Expert: Matt Odom, mortgage loan originator and owner of Odom Mortgage. Odom has been working in the Cape Coral market for nine years.

Why do homebuyers want to move to Cape Coral?

“It feels more like the Midwest when you come down here. The city’s more sprawled out, a little more spaced out than what you’re going to run into in Miami or Tampa. You can get more space in Cape Coral than you would in Miami. Cape Coral has been getting more expensive but it has been one of the better values. Cape Coral has approximately 400 miles of canals; a lot of these homes are on canals that lead to the Caloosahatchee River, which gives them Gulf access. People can have their boat in their backyard, they can run out to the river in an hour and go to different beaches and restaurants.”

“People are going from towns that they’re comfortable in the Midwest and finding that feel in Florida. We have mainly retirees, the younger people go more for Tampa, but we do get some younger people moving down here. We see a lot of people coming from Ohio. I have met a few people from Chicago, the Midwest is very popular."

Las Vegas, Nevada

February home price: $418K (30.6% year-over-year growth)
Portion of searches from users outside the metro (2022): 44.2%
Top origin: Los Angeles, California

Expert: Jeff Dragovich, a mortgage broker known as “The Vegas Mortgage Dude.” Dragovich has worked in the Las Vegas market for five years.

Why do homebuyers want to move to Las Vegas?

“There’s a lot of buzz around Las Vegas. Typically, everybody asks me, ‘You live in Vegas, do you live in a hotel?’ I don’t. I think that’s changing. It feels like there’s a good energy. Vegas is the entertainment capital of the world. It started with the (NHL’s) Golden Knights, that lit the city on fire, we got the (NFL’s) Raiders. Most people in Vegas love to do outdoor stuff, most people here are very active. You can rock climb all-year round. We have a lot of Bureau of Land Management land, everybody does a lot of outdoor activities.”

“We’re getting a lot of traffic from the East Coast, a lot of people retiring. We’re getting a lot of people coming out of state with dough, California especially. You’re getting an influx of out-of-state people looking for a change, being in a situation where they were able to sell their $800K, $900K home in California and come out here and buy a $550K home in cash.”

Sacramento, California

February home price: $485K (14.1% year-over-year growth)
Portion of searches from users outside the metro (2022): 42.4%
Top origin: San Francisco, California
Top out-of-state origin: Seattle, Washington

Expert: Matthew Miller, senior loan officer at Mason-McDuffie Mortgage Corp. Miller has worked in the region since 2002.

Why do homebuyers want to move to Sacramento?

“Our downtown is starting to grow. Now that the pandemic has blown over, we’re seeing more activity, what it was supposed to be. They’re building up Old Town Sacramento with waterfront work out there, all those hot spots are maintaining or increasing values. Most people that come say, ‘I don’t understand why it took so long to catch on,’ you’re only an hour from the coast and an hour from the snow.' It’s tough to find a place like this.”

“People are selling in the Bay Area and taking that money, selling off their $1.5 million, 2-bedroom condo and buying a 3-bedroom, 2-bathroom home here. They’re upsizing but going down in price. You see a lot of that happening. I have not seen many out-of-state buyers coming our direction.”

Tampa, Florida

February home price: $360K (22% year-over-year growth)
Portion of searches from users outside the metro (2022): 50.0%
Top origin: Orlando, Florida
Top out-of-state origin: Washington, D.C.

Expert: Gerald Bliss, owner and mortgage loan originator at Bliss Mortgage. Bliss has worked in the Tampa region since 2017.

Why do homebuyers want to move to Tampa?

“During the pandemic with a lot of lockdowns, blue states seemed to be very restrictive, homebuyers saw Florida and how it’s not so restrictive. And of course, it also helps there’s no state income tax, and the weather. I’d have to say the ‘Tom Brady’ effect helped, too. Our sports teams have been making the news. Those seem to be a factor with putting eyes on Tampa. We’ve had nurses come down here, definitely some self-employed borrowers who work in the tech industry, I’ve also seen truck drivers, their companies allow them to move around the country.”

“We’re actually getting a lot of calls from people from out of state, from North Carolina, Connecticut, New York, Las Vegas, Minnesota, and California. A lot of clients that had homes in those other states sold them for more and put large deposits down on homes that are bigger but less expensive.”

Phoenix, Arizona

February home price: $438K (30.7% year-over-year growth)
Portion of searches from users outside the metro: 38.1%
Top origin: Los Angeles, California

Expert source: Tricia Amato, a Realtor with HomeSmart. Amato has worked in the Phoenix region for six years.

Why do homebuyers want to move to Phoenix?

“Arizona’s a popular market because it’s warm here and it’s close to California. Phoenix is turning into a huge tech hub, there’s a lot of companies moving into the region. Manufacturing has been moving to the region and we have some major medical industries, there’s a lot of research too.”

“Homebuyers are coming from all over, not just Los Angeles. Phoenix is the fastest-growing city in the United States. We see a lot of people from Chicago, the East Coast and Midwest. I think the idea that people from California have blown up our housing market, that’s not fair.”

Miami, Florida

February home price: $485K (27.6% year-over-year growth)
Portion of searches from users outside the metro: 34.5%
Top origin: New York, New York

Expert: Dennis Vo, a senior mortgage advisor at McLean Mortgage Corp. Vo has worked in the Miami area for four years.

Why do homebuyers want to move to Miami?

“Miami delivers everything in terms of a cosmopolitan area. It’s got a cultural vibe to it, you’ve got your food, the warm weather, and I think the biggest caveat, you got the tax benefits. I’ve helped a lot of clients relocate from New York that have the ability to work remotely. I always joke around with people, there’s the five boroughs, and Miami is the sixth borough.”

“The mindshift is, why pay New York city and state income tax in the winter when they can come into Miami? The barrier to entry is too high in New York, you get a lot of people wanting to take their New York salary and pay down to Florida and their buying power is so much higher. That’s why you’re seeing a lot of the inventory get gobbled up by the migration of people coming down here. It's not local money that’s buying, it’s all the out-of-state money. It’s hurting the localized first-time home buyers, you’re seeing inventory just flying off the shelf.”