August 10, 2017
Redfin Migration Report: Home Affordability Continued to Shape Migration Currents as Homebuyers Looked to Leave Expensive Coastal Cities in the Second Quarter

The Bay Area, New York and Los Angeles ranked highest for net outflow of home searchers

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) — Twenty-one percent of Redfin.com users in the second quarter of 2017 searched mostly for homes outside the metro where they reside, slightly up from 20 percent in the first quarter, according to the latest migration report from Redfin (www.redfin.com), the next-generation real estate brokerage.

The Redfin Migration Report analyzed a sample of more than one million Redfin.com users searching for homes across 75 metro areas during the peak of the homebuying season from April through June. Redfin used IP addresses to identify the metros where home searchers likely reside and compared that to where users were searching for homes.

While 79 percent of Redfin.com home searchers looked to stay in their current metro, several key trends emerged among those looking to move to another metro:

  1. There continued to be significant migration within the state of California, with the most common search patterns being buyers looked to leave the Bay Area and Los Angeles, heading to Sacramento and San Diego.
  2. Several Rust Belt metros saw more than a quarter of local homebuyers looking at homes outside their metro with Chicago being the top destination.
  3. Metros in the South and the Sunbelt remained popular destinations for migrants from expensive coastal cities.
  4. Chicago, Boston and Seattle again had the highest share of residents looking to stay in their current metros.

“Home searches are early indicators of home sales. The migration patterns in our report closely correlate to actual purchases made by Redfin home-buying customers within and across metros,” said Taylor Marr, a Redfin data scientist who conducted the underlying research.

“Buyers who can’t afford a home in their current city are exploring what is available elsewhere,” said Marr. “We are already seeing strong buyer demand and competition in mid-tier cities like Sacramento, Phoenix and Atlanta. As home searches evolve into purchase offers and home sales, we anticipate prices and competition will continue to grow in those markets.”


 

Top 10 Metros by Net Outflow of Users and Their Top Destinations

Rank

 

 

Metro*

 

 

Net Outflow†

 

 

Portion of Local
Users Searching
Elsewhere

 

 

Top Destination

 

 

Top Out-of-State
Destination

1

 

 

San Francisco, CA

 

 

-16,913

 

 

18.80%

 

 

Sacramento, CA

 

 

Seattle, WA

2

 

 

New York, NY

 

 

-15,790

 

 

34.60%

 

 

Boston, MA

 

 

Boston, MA

3

 

 

Los Angeles, CA

 

 

-13,177

 

 

14.70%

 

 

San Diego, CA

 

 

Las Vegas, NV

4

 

 

Washington, DC

 

 

-5,571

 

 

10.50%

 

 

Philadelphia, PA

 

 

Philadelphia, PA

5

 

 

Chicago, IL

 

 

-2,631

 

 

7.90%

 

 

Los Angeles, CA

 

 

Los Angeles, CA

6

 

 

Denver, CO

 

 

-368

 

 

17.90%

 

 

Chicago, IL

 

 

Chicago, IL

7

 

 

Houston, TX

 

 

-354

 

 

24.20%

 

 

Austin, TX

 

 

Los Angeles, CA

8

 

 

Detroit, MI

 

 

-338

 

 

25.30%

 

 

Chicago, IL

 

 

Chicago, IL

9

 

 

Milwaukee, WI

 

 

-246

 

 

36.80%

 

 

Chicago, IL

 

 

Chicago, IL

10

 

 

Dayton, OH

 

 

-34

 

 

37.30%

 

 

Cincinnati, OH

 

 

Chicago, IL

*Combined statistical areas with at least 500 users in Q2 2017

†Among the one million users sampled for this analysis only

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Top 10 Metros by Net Inflow of Users and Their Top Origins

Rank

 

 

Metro*

 

 

Net Inflow†

 

 

Portion of
Searches from
Users Outside
the Metro

 

 

Top Origin

 

 

Top Out-of-State
Origin

1

 

 

San Diego, CA

 

 

5,233

 

 

29.40%

 

 

Los Angeles, CA

 

 

Seattle, WA

2

 

 

Sacramento, CA

 

 

4,831

 

 

35.30%

 

 

San Francisco, CA

 

 

Seattle, WA

3

 

 

Phoenix, AZ

 

 

3,975

 

 

31.40%

 

 

Los Angeles, CA

 

 

Los Angeles, CA

4

 

 

Las Vegas, NV

 

 

3,660

 

 

42.00%

 

 

Los Angeles, CA

 

 

Los Angeles, CA

5

 

 

Atlanta, GA

 

 

2,914

 

 

24.30%

 

 

New York, NY

 

 

New York, NY

6

 

 

Dallas, TX

 

 

2,112

 

 

21.10%

 

 

Los Angeles, CA

 

 

Los Angeles, CA

7

 

 

Tampa, FL

 

 

1,899

 

 

45.90%

 

 

Washington, DC

 

 

Washington, DC

8

 

 

Miami, FL

 

 

1,861

 

 

22.00%

 

 

New York, NY

 

 

New York, NY

9

 

 

Boston, MA

 

 

1,707

 

 

12.30%

 

 

New York, NY

 

 

New York, NY

10

 

 

Austin, TX

 

 

1,601

 

 

23.20%

 

 

San Francisco, CA

 

 

San Francisco, CA

*Combined statistical areas with at least 500 users in Q2 2017

†Among the one million users sampled for this analysis only

 

To read the full report, complete with an interactive data map of metro-to-metro migration trends and full methodology, please visit: https://www.redfin.com/blog/2017/08/migration-report-q2-2017.html.

About Redfin

Redfin (www.redfin.com) is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $50 billion in home sales.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, subscribe here. To view Redfin's press center, click here.

Contacts
Redfin Journalist Services:
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