New research shows that more and more Americans are looking to leave big cities like Los Angeles and New York amid record inflation rates.
According to RedFin, a real estate company, nearly 25% of homebuyers want to move out of their greater metro area, the highest number in years.
In the third quarter of 2022, 24.2% of respondents said they would move to another metropolitan area. This rate is up nearly 1% from the second quarter and 2% from a year ago.
Before the COVID-19 pandemic, only 18% of homebuyers said they would move elsewhere.
Dallas and San Diego are among the top cities where home buyers are looking to move
Homebuyers are looking to leave cities like Los Angeles and New York where crime and homelessness are ‘out of control’
Those looking for a new home and a new city are looking to flock to cheaper cities like San Diego, Dallas, Phoenix and Miami, the data shows.
RedFin says there are several factors driving the willingness to move.
“Spiking mortgage rates and persistently high home prices are prompting many buyers who remain in the market to move to more affordable areas,” the group said.
The numbers, however, could start to fall as the economy balances out.
Remote work options allow more people to move from their current city to places they wouldn’t otherwise have the chance to live, according to the analysis.
Rates on 30-year fixed mortgages have also doubled over the past year, now over seven percent.
These figures, in addition to still high house prices, are driving many people out of the market. Of those who are still interested in buying, however, they want to find a more affordable city than where they currently live.
“With a looming recession and high household spending, many people cannot afford to buy a home in an expensive area and/or want to save money for an emergency, which makes relocating in a more affordable place an attractive option,” Redfin said. Head of Economic Research Chen Zhao
RedFin looked at 100 metropolitan cities and found that more people were looking for properties in cities like Miami, Las Vegas, Sacramento, Dallas, and Tampa that had the highest “net flow” on their website.
Net inflow is what the company calls people moving from one metropolitan area to another. They also subtract the number of people seeking to leave that second city to fully calculate the rate.
It’s no surprise that people are flocking to sunnier areas, according to the company.
Florida and California hold five of the 10 spots, while only one, Portland, Maine, truly sees all four seasons.
Sacramento, for example, has a median home price of $560,000. While the price is higher than the 2022 national average of $392,000, it is significantly lower than the $1.5 million San Francisco average.
Miami, on the other side of the country, is seeing a huge spike in New York residents looking to relocate to the “Sunshine State.”
Tampa is one of three cities in Florida where residents from other cities and states are looking to flock
Miami, known for its rich culture, beaches and nightlife, is another city in the “Sunshine State” that is becoming increasingly popular.
In New York, the average price of a house will cost you around $680,000.
In Miami, however, you could save $200,000 due to their median sale price of $475,000.
The number is still $80,000 higher than the national average, but represents huge savings for people moving from places like New York and Los Angeles.
“Nine of the top 10 destinations have more affordable property prices than their top origins,” data from RedFin shows.
The only major exception to this list is Cape Coral Florida, which has a higher median house price than Chicago, where a large portion of migrants originate.
Sacramento and Las Vegas are two of the main cities for people looking to leave major metropolitan areas like New York and Los Angeles
The numbers are expected to drop at some point, however.
“Migration will likely slow in the coming months as the labor market slowdown and job losses push more people to stay put or move in with their families, although some may need to move for new opportunities. employment. Additionally, many remote workers who wanted to relocate have already done so,” Zhao said.
Despite forecasts, current numbers say a lot about where people want to move.
“More homebuyers sought to leave San Francisco than any other major metro, followed by Los Angeles, New York, Washington, DC and Boston,” RedFin said.
New York in 2021 had over 8.4 million people, making it the most populous city in the country
Along with the high cost of living in big cities, crime rates, homelessness and job opportunities elsewhere are causing people to jump ship.
In San Francisco, one of the cities where many home buyers give up, open-air drug markets and security concerns are driving many people to other cities, in and out. of the Golden State.
Major crimes in San Francisco are up 7.4% so far this year compared to the same period in 2021, with assaults up 11.1% and robberies up 5.2% .
Amid scenes of misery on city streets, where drug use is rampant and homelessness rampant, a recent poll found a majority of San Franciscans believe their city is falling apart. and a third plans to leave town within three years.
San Franciscans in the SoMa neighborhood began carrying defensive weapons after a “drug” clinic moved into the neighborhood. Pictured: Homeless people are seen in San Francisco in July
Homeless people line the sidewalks in the Tenderloin neighborhood of San Francisco, where crime has increased over the past year
A homeless woman smokes crack in San Francisco’s Tenderloin District
Some locals blame Mayor London Breed, whose previous popularity for leading the city through the pandemic appears to have waned amid rising crime, the fentanyl epidemic and other woes.
Earlier this month, some San Franciscans told FOX they arm themselves with baseball bats and stun guns out of fear for their lives while traveling around the Bay Area.
In Los Angeles, another city where crime and homelessness are rampant, residents have also expressed concern about these issues.
Homelessness is a dominating topic in the city’s upcoming mayoral election, with a wide range of candidates promising to do more on an issue that has thrust Los Angeles into the unwanted national spotlight.
Sagging tents, rusting RVs and makeshift structures have become commonplace along Hollywood Boulevard to Venice Beach — and even in the shadow of City Hall.
A photo taken by an amazed onlooker showed such an encampment in Hollywood, where several people were seen washing what appeared to be their cars and motorcycles with water siphoned from a nearby fire hydrant.
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