High Inflation Could Derail Country’s Top Migration Destinations

The pandemic triggered a great rebalancing of affordability, according to a new report from Redfin.

Four markets with the highest inflation rates in the country are also attracting the most, new homebuyers.

For example, the inflation rate in Phoenix, which has attracted scores of out-of-town homebuyers during the pandemic, is more than double the inflation rate in the Bay Area, which has seen an exodus of residents, Redfin reported.

Atlanta, Tampa, and Miami also experienced double-digit inflation rates, and all ranked near the top of Redfin’s list of most popular destinations for relocating homebuyers.

Some of these areas may lose their titles as top migration destinations in 2023 as a result, Redfin’s deputy chief economist Taylor Marr said in prepared remarks.

“Americans left pricey coastal job centers and moved to more affordable places in the Sun Belt, but now those more affordable places are seeing affordability erode faster than anywhere else in the country,” Marr said.

Phoenix’s price of goods and services rose 13% year over year on average, the highest inflation rate among the metros covered by the U.S. Bureau of Labor Statistics (BLS).

Atlanta had the second highest inflation rate, at 11.7%; Tampa (10.9%) was third and Miami (10.7%) was fourth.

Nationwide, the inflation rate was 8.3% in the third quarter.