A notable migration trend is emerging in the real estate market. As people seek respite from the soaring costs of high-priced coastal cities, the South and Southwest are becoming hotspots for potential homebuyers, with Las Vegas leading the pack as the most coveted destination.
Online real estate brokerage Redfin.com has been tracking this trend closely, revealing that nearly 26% of property search queries are now directed towards cities where the seekers currently don’t reside, reports CNBC. This percentage is the highest since 2017, indicating a significant shift in homebuyer preferences.
Homeownership costs play a pivotal role in this exodus, with buyers hailing predominantly from cities known for their extravagant real estate prices, like New York and Los Angeles.
Redfin’s analysis of 100 metro areas has shed light on the top 10 cities experiencing a considerable net inflow of property searches. Las Vegas, Phoenix, and Tampa, Florida, top this list, offering more affordable housing alternatives compared to the cities people are fleeing.
The top 10 cities people are looking to relocate to are:
- Las Vegas
- Phoenix
- Tampa, Florida
- Orlando, Florida
- Sacramento, California
- North Port-Sarasota, Florida
- Cape Coral, Florida
- Dallas
- Miami
- Houston
On the flip side, cities like San Francisco, New York City, and Los Angeles are witnessing substantial net outflow of property searches. In search of budget-friendly options, many are leaving the coastal hubs in pursuit of low-tax states and more reasonably priced homes.
For instance, Los Angeles residents eyeing Las Vegas properties can enjoy a significant reduction in costs, with Las Vegas boasting a median home price of $412,500 — almost half of Los Angeles’ staggering $975,000 median.
The top 10 cities people are leaving are:
- San Francisco
- New York City
- Los Angeles
- Washington, D.C.
- Chicago
- Boston
- Seattle
- Hartford, Connecticut
- Denver
- Detroit