Nearly one in three homebuyers are looking to relocate, a historic high.
A record 32.4% of Redfin.com users nationwide were searching in entirely new metro areas than where they lived in January, up from a previous high of 31.5% in the first quarter of last year. Prior to the pandemic, about one-quarter of homebuyers were looking to relocate.
And that number is expected to continue to climb, thanks to increasing mortgage rates and deepening affordability in major cities.
Recommended For You
"I predict the share of homebuyers looking to move to a different area will continue to rise throughout the year," said Redfin Chief Economist Daryl Fairweather. "With mortgage rates going up and rents skyrocketing, moving somewhere more affordable is one of the only ways for many Americans to stay within their housing budget. Even workers who are unable to work from home should feel confident about finding a job in a new location with the tight labor market."
The most popular cities? Miami, Phoenix, Tampa, Sacramento, and Las Vegas, all "perennial favorites for relocators," according to Redfin. Home prices in those cities are rising, however: in Miami, the typical home sold for $436,900 in January, up 18.1% year over year and above the national median of $376,200.
"While Sun Belt cities like Miami and Phoenix aren't likely to lose their luster anytime soon, rising prices may soon render them slightly less popular for relocators," Fairweather said. "Home prices–and the costs of other goods and services–are skyrocketing in a lot of these destinations precisely because they're so popular with out-of-towners. Some homebuyers who prioritize affordability may start searching in less expensive northern cities."
Buyers are looking to leave San Francisco, Los Angeles, New York, Seattle and Washington, D.C. more than any other cities, a metric that is unchanged from the fourth quarter. San Francisco is the most expensive city in the country to buy a home, with a median sale price of roughly $1.4 million, and "Los Angeles, New York and Seattle aren't far behind."
The affordability crisis has deepened across the US amid spiking inflation and unprecedented materials shortages: according to the NAHB/Wells Fargo Housing Opportunity Index (HOI) released last week, just 54.2% of new and existing homes sold between the beginning of October and end of December were affordable to families earning the US median income of $79,900.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
