SAN FRANCISCO (KRON) — San Francisco is the number one city in the United States in terms of homebuyers moving out and/or looking to move out, says a report published recently by Redfin.
Quarter 2 data (April-June) shows 48,718 Redfin.com users looked to move out of SF, which is 8,000 more than second-ranked Los Angeles. New York, Washington D.C., and Seattle round out the top 5.
Where are they going?
The top destination for prospective homebuyers moving out of San Francisco is roughly 100 miles northeast in Sacramento. The top out-of-state destination is Seattle.
The study says migration out of San Francisco has increased within the past year. In comparison, the number of prospective homebuyers moving out of New York is declining. Permanent remote work becoming the norm for many was cited as one factor, along nationwide inflation.
“The typical home in San Francisco or San Jose now costs more than $1.5 million. Add in today’s 5%-plus mortgage rates and you have a sky-high monthly payment,” said Redfin Deputy Chief Economist Taylor Marr. “Those factors, along with more companies giving employees the permanent flexibility to work remotely, are driving a larger portion of buyers to consider homes in other parts of the country. Someone who would have to stretch beyond their budget in Los Angeles may be able to comfortably afford a home in Phoenix or San Antonio.”
In contrast for that same time period, the Miami, Tampa, Phoenix, Sacramento, and Las Vegas (in that order) were the top metros where homebuyers are migrating in.
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The analysis is based on a Q2 sample of about 2 million Redfin online users who searched for homes in over 100 metros in the country, according to the company’s website. Quarter two spans from April to June.
The data doesn’t include searches that unlikely lead to a home purchase. Included in the data are Redfin.com users who have viewed at least 10 homes in a particular metro area, and homes in that area made up at least 80% of the user’s searches.
All the cities analyzed had at least 500 Redfin.com users in Q2. The full study by Redfin can be viewed here.