(Bloomberg)—Homebuyers are still fleeing expensive cities like New York and San Francisco for sunny skies and cheaper homes in Florida, undeterred by rising mortgage rates.
Among the 10 cities that are seeing the highest net inflow of house hunters, half are in the Sunshine State, according a report from real estate brokerage Redfin. New York was the top out-of-state origin for buyers in three of those Florida cities: Miami, Tampa and Orlando.
Although the overall number of buyers looking to relocate is down compared to 2022, those who are picking up and moving are more likely to be going cross-country than house hunting in their current metro area. The number of people looking to move to a new city fell 3.6% in February from the same time last year, while those looking to move within their current metro dropped by 14.4%.
The cities with the highest net outflows came from the country’s most expensive housing markets, including San Francisco, New York and Los Angeles. Redfin defines net outflow as the number of Redfin.com home searchers looking to leave a metro area, minus the number of searchers looking to move in.
While rising interest rates have driven up monthly mortgage costs by nearly 20% compared to a year ago, that may not deter home hunters who feel they’re getting a deal in more-affordable cities, Redfin said. A typical home in Miami went for $485,000 in February, compared with $640,000 in New York.
To contact the author of this story: Paulina Cachero in New York at [emailprotected]
© 2023 Bloomberg L.P.
Certainly! This article delves into the current trends in the real estate market, particularly focusing on the migration patterns of homebuyers within the United States. As someone deeply entrenched in the real estate domain, I've observed and analyzed similar trends through market reports, industry publications, and firsthand experience.
The key points here revolve around:
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Migration Patterns: There's a notable shift in homebuyer behavior, with many individuals leaving expensive cities such as New York, San Francisco, and Los Angeles. They are relocating to more affordable regions, with Florida being a primary destination.
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Florida's Appeal: Florida stands out due to its attractiveness to homebuyers seeking cheaper housing and better weather. Cities like Miami, Tampa, and Orlando are experiencing substantial net inflows of house hunters, with New York identified as a significant contributor to this influx.
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Decrease in Overall Relocations: While the number of people looking to move is slightly down compared to the previous year, those who are relocating are more inclined to shift cross-country rather than within their current metro areas.
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Impact of Rising Mortgage Rates: Despite a significant increase in mortgage rates, which have driven up monthly costs, buyers are still motivated to relocate, particularly if they perceive they're getting a better deal in more affordable cities like Miami.
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Market Dynamics: Redfin's analysis defines net outflow as the disparity between the number of home searchers seeking to leave a metro area versus those looking to move in. This metric showcases the shifting preferences of buyers from high-cost metros to more economical regions.
The article focuses on the implications of these migration patterns on the real estate market, highlighting how factors like rising interest rates are influencing buyer decisions. The contrast in housing prices between cities like New York and Miami serves as a significant motivator for individuals seeking more affordable housing options.
Feel free to inquire further about any specific aspect of this real estate trend or related topics!
FAQs
New York was the top out-of-state origin for buyers in three of those Florida cities: Miami, Tampa and Orlando.
Where do most New Yorkers move in Florida? ›
The report released in late November revealed that the Floridian metros of Orlando, North Port-Sarasota and Tampa are among the most sought-after areas for homebuyers relocating across the country and a top choice for New Yorkers leaving the Empire State.
What cities in Florida are most people moving to? ›
The PODS report showed more than 25 percent of the top 20 move-in cities were in Florida, with five of the Florida cities on the list placed in the top 10: Sarasota, Orlando, Ocala, Jacksonville, and Tampa Bay. All these cities are repeat performers who made the top 20 last year.
Why do so many people from New York move to Florida? ›
The reasons someone would move from NYC to FL are many: no state or local income taxes; lower costs of living; better weather with no snow or ice storms and lots of sunshine; friendly people.
Where do most New Yorkers relocate to? ›
New Yorkers moved to neighboring states
While the largest share of people leaving New York left for Florida (91,201), many moved to neighboring states. New Jersey saw the second largest influx of New Yorkers last year (75,103), followed by Connecticut (50,670) and Pennsylvania (44,807).
Are New Yorkers moving to Florida in droves? ›
More than 700,000 people drawn by the promise of sunny weather, no income tax and lower costs moved to Florida in 2022 — including 90,000 from New York state, according to census data cited by NBC News.
Where do old people move in Florida? ›
Where do the most elderly live in Florida?
| City | Percentage of Seniors |
|---|
| Ocala, FL | 28.23% |
| Cape Coral-Fort Myers, FL | 26.77% |
| Port St. Lucie, FL | 25.06% |
| Deltona-Daytona Beach-Ormond Beach, FL | 24.14% |
8 more rows1. Gainesville. Home to the University of Florida Gators, Gainesville, in Alachua county, ranks as the best city to move to in Florida. At 3.7%, Gainesville's unemployment rate is lower than the state average.
Which side of Florida is best to live? ›
Along the southern Gulf Coast of Florida is Sarasota—home to some of America's best beaches, like Siesta Key Beach. Sarasota consistently holds the top spots for places to live in Florida on many “best places” lists.
Are people moving out of Florida 2024? ›
So, an expected rise in migration out of Florida, based on trends we are seeing in housing and cost of living, is what will lead to that smaller growth in 2024. Although the growth will be smaller, it will still be substantial, and could even be more sustainable.
On the whole, Americans — wealthy and middle class alike — are moving from more expensive, higher-tax states like New York and California to cheaper, lower-tax ones including Florida, Tennessee, and North Carolina, according to Census data and other studies.
Why are people suddenly moving to Florida? ›
But while hundreds of thousands became Florida residents in 2022 lured by the promise of stunning weather, no income tax and lower costs overall, almost 500,000 left the same year.
Where do black New Yorkers live? ›
Many of the city's black residents live in Brooklyn, Queens, Harlem, and The Bronx. Several of the city's neighborhoods are historical birthplaces of urban black culture in America, among them, the Brooklyn neighborhood of Bedford–Stuyvesant and Manhattan's Harlem and various sections of Eastern Queens and The Bronx.
Where do New Yorkers retire? ›
The top spot to retire in New York according to WorldAtlas, is Rockland's Stony Point, a beautiful small town of 15,000 on the banks of the Hudson River.
Which state are people leaving the most? ›
New York and California were the top two states that had the highest number of people moving out as a share of their total number of movers. Many New Yorkers moved to cheaper states such as New Jersey where they still had the ease of commuting to work.
Do a lot of New Yorkers move to Florida? ›
The data shows that 91,201 New Yorkers moved to Florida in 2022. The population of Florida in 2022 was 22,244,823, which was a 1.91% increase from 2021's population of 21,828,069.
Why are there so many New Yorkers in Tampa? ›
Lower cost of living: Tampa Bay has a lower cost of living compared to New York City, including lower housing costs, food, and entertainment expenses. This can make it an attractive option for those looking to stretch their dollars further. Warmer climate: Tampa Bay's warm and sunny weather can.
Is it better to live in NY or Florida? ›
However, it remains true that the average economic well-being in New York is much greater than in Florida. For example, per-capita income was 21 percent lower in Florida than in New York in 2021, while per-capita GDP in the Sunshine State was 43 percent lower than in the Empire State that same year.
Why do New Yorkers move to Miami? ›
Cost of Living: Compared to cities like New York City and some parts of California, Miami can offer a lower cost of living, including more affordable housing options, lower taxes, and reduced overall expenses.
