Widespread Desire to Relocate Could be Waning

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Has the well-documented, pandemic-fueled desire to migrate from denser urban areas to the suburbs peaked? It is possible that the slight decline in April in the proportion of homebuyers looking to move to new metropolitan areas is an early sign that the trend is easing as more Americans get COVID-19 vaccinations and return to the office.

However, experts do not have a definitive answer, but they provide insight for our deliberations.

“The surge in relocations may have come back from its peak, but the proportion of homebuyers looking to move to another area is still well above pre-pandemic signs of slowing,” Redfin chief economist said Daryl good weather.

“The small drop in April could be the start of a slowdown in the year-long increase in people moving from one subway to another, but it could also just be a spike before things pick up properly again. The dust has not settled, as there are still many unknowns about the proportion of workers returning to the office and how many will pick up and move because they finally have clarity from their employers as to whether or how often they can work remotely see big wave of migration … “

Nationwide, 30.6% of Redfin.com users wanted to move to another metropolitan area in April, down slightly from 31.5% in the first quarter, but down from 26% at the same time last year, according to Redfin reports.

Back in March, Fannie Mae reported that there was widespread anecdotal evidence that the pandemic had shifted consumer demand from core cities to lower density markets like the suburbs.

“One look at the number of people applying for a mortgage showed a clear change in behavior,” wrote Rebecca Meeker for Fannie Mae. Since then, many real estate data providers have confirmed the willingness of mortgage creditors to move.

Redfin’s April data shows that this trend, which is showing some signs of slowing down, is still strong for certain regions and that home price is an increasingly important factor.

It appears that sunny subways inland and parts of Florida are the most desirable destinations for moving companies this spring.

“Phoenix, Las Vegas, Sacramento, Austin, and Atlanta were the top travel destinations for Redfin.com users planning to relocate to another area in April. This is based on the net inflow, which is a measure of how many more Redfin.com home searchers move to a subway than wanted to leave a sample of two million users, ”reports the Redfin team.

“Relatively affordable inland subways tend to be the most popular destinations for Redfin.com users looking for homes in another part of the country, as apartment hunters leave expensive coastal cities like The angel and new York in favor of places with cheaper, more spacious apartments. “

In all 10 of the top 10 metropolises with the most immigrants, the inflow increased in the same period compared to the previous year.

“I am still seeing a lot of interest from homebuyers outside of the area,” the Sacramento agent said Redfin Andrea White. “Some remote workers who are in San Francisco or Silicon Valley pay more than $ 3,000 a month to live in a very small space. When prospective buyers look at offers in Sacramento, notice that your city rent costs more here than a mortgage. Most of them are not worried that the competition is intense and real estate prices are going up because it is an attractive lifestyle. Employees who have the option to work remotely often decide it is worth moving out of a big city to live in a bigger house for less money. “

She added that she’s working with house hunters searching in the Sacramento Valley because they are planning for the future.

“Some buyers from the Bay area and Southern California are about to retire and want to escape the hustle and bustle of big city life, some are planning children for the future and are looking for a more spacious home to raise their family. “

Here is a list of those top 10 metros courtesy of Redfin.

And the largest outflow figures go to:

The full report, including charts, is available at: redfin.com/news/april-2021-housing-migration-trends.

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