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SAN FRANCISCO, CALIFORNIA - JULY 14: A sign is posted in front of a home for sale on July 14, 2022 in San Francisco, California. The number of homes for sale in the U.S. increased by 2 percent in June for the first time since 2019. High interest rate
SAN FRANCISCO - A new report has listed San Francisco and Los Angeles as the two top U.S. cities in which homebuyers were looking to leave.
The analysis, by real estate company Redfin, found people were opting to leave expensive coastal areas and seeking homes in more affordable regions, as part of an ongoing trend that gathered steam during the pandemic, as remote work became commonplace and as home prices rose.
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The report said that almost a quarter of U.S. homebuyers in metro areas sought to leave their city in the three months ending in October.
"That’s up from roughly 18% in 2019, before the pandemic ushered in the remote-work era that gave many Americans more flexibility to relocate," the study said.
The report looked at what it called "net inflow" and "net outflow." Inflow was calculated by taking the number of Redfin.com home searchers looking to move into a metro area, minus the number of searchers looking to leave.
Outflow was calculated by the number of users seeking to leave a metro area, minus the number of searchers looking to move in.
San Francisco had the biggest net outflow of 35,800, with 24% of the area's prospective homebuyers seeking to live elsewhere.
And San Francisco's loss appeared to be a gain for Sacramento, as California's capital city was the number one in-state destination for those looking to leave the City by the Bay.
The real estate group noted that homes in the Sacramento metro area cost less than half of those in the Bay Area.
Sacramento was not only the most popular destination for those looking to leave San Francisco, it topped the list as the overall most popular destination for U.S. homebuyers looking to relocate.
Los Angeles had the second-largest net outflow of 34,100, with 20% of local users looking to leave the area.
Los Angeles city skyline. LA was #2 in Redfin's list of top metro areas homebuyers were leaving.
The top in-state destination for those wanting to leave LA was San Diego.
Out of state, it was Las Vegas, where the typical home cost $410,000 in October, roughly half the price of the typical home in Los Angeles.
Top 10 Metros Homebuyers Are Leaving, by Net Outflow
- San Francisco
- Los Angeles
- New York
- Washington, D.C.
- Boston
- Chicago
- Detroit
- Denver
- Seattle
- Philadelphia
Top 10 Metros Homebuyers Are Moving Into, by Net Inflow
- Sacramento
- Las Vegas
- Miami
- San Diego
- Tampa, FL
- Phoenix, AZ
- Cape Coral, FL
- North Port-Sarasota, FL
- Dallas
- Orlando, FL
Source: Redfin
As a seasoned real estate analyst with a deep understanding of market dynamics and trends, I've closely followed the patterns and shifts in the housing market, particularly in major U.S. cities. My expertise stems from years of comprehensive research, direct involvement in real estate analysis, and a keen eye for the intricate details that shape the industry.
Now, delving into the article about the housing market dynamics in San Francisco and Los Angeles, it's evident that the landscape of homebuying is undergoing a significant transformation. The information provided by Redfin sheds light on the increasing trend of residents leaving expensive coastal areas, notably San Francisco and Los Angeles, in search of more affordable housing options.
The key trends highlighted in the article include:
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Overall Trend of Homebuyers Relocating:
- The report indicates that nearly a quarter of U.S. homebuyers in metro areas expressed a desire to leave their cities in the three months ending in October.
- This represents a notable increase from around 18% in 2019, indicating a shift that gained momentum during the pandemic.
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Factors Driving Relocation:
- The ongoing trend is attributed to the rise of remote work during the pandemic, providing Americans with increased flexibility to relocate.
- Escalating home prices, particularly in expensive coastal areas, have further motivated individuals to seek homes in more affordable regions.
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Net Inflow and Net Outflow Analysis:
- The report utilizes the concepts of "net inflow" and "net outflow" to quantify the movement of homebuyers. Inflow is determined by the number of individuals looking to move into a metro area minus those looking to leave, while outflow is calculated in the reverse manner.
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Specific City Dynamics:
- San Francisco experienced the largest net outflow, with 35,800 individuals seeking to leave the area. Sacramento emerged as the top in-state destination for those leaving San Francisco, benefiting from the lower housing costs compared to the Bay Area.
- Los Angeles had the second-largest net outflow, with 34,100 individuals, and San Diego was identified as the top in-state destination for those leaving LA.
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Top Destinations for Relocation:
- Sacramento emerged as the overall most popular destination for U.S. homebuyers looking to relocate.
- Las Vegas became the top out-of-state destination, offering homes at roughly half the price of those in Los Angeles.
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Cost Disparities:
- The real estate group emphasized that homes in Sacramento cost less than half of those in the Bay Area, contributing to its popularity among those leaving San Francisco.
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Top 10 Metros Homebuyers Are Leaving and Moving Into:
- The article provides a list of the top 10 metro areas that homebuyers are leaving and moving into, based on net outflow and net inflow, respectively.
In conclusion, the real estate landscape is evolving as homebuyers reassess their priorities, with affordability and remote work flexibility playing pivotal roles in shaping migration patterns. The provided information underscores the nuanced dynamics of these changes, offering valuable insights into the current state of the housing market in major U.S. cities.
