MIGRATION TO THE USA: TOP 10 TRENDING CITIES 

 MIGRATION TO THE USA: TOP 10 TRENDING CITIES 

Internal migration from the US is a fundamental factor for any real estate investor.

This big data makes it possible to understand and analyze an overall trend in buyer behavior.

So it's common here in the United States for big players in the ecosystem to publish reports along these lines.

This is what one of the largest real estate listing websites, Redfin, recently published .

This report shows the most sought-after cities for homes for sale, giving a good idea of the most attractive locations for buyers.

Let us now see what we can learn from this data.

USA home buyer migration

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Trend of buyer migration and consequences.

Migration trends in the United States are constantly evolving. This is one of the fundamental characteristics of Americans.

Faced with this, real estate investors must be able to adapt.

A record number of buyers are looking to leave their state, according to the latest data from Redfin.

By the third quarter of 2023, approximately 26% of homebuyers plan to move to another region of the country.

Compared to 24% a year ago and 19% before the pandemic.

It largely depends on the cost of living and affordability of property (directly linked to the interest rate).

But as people move to more affordable areas, they are also moving to areas particularly prone to natural disasters. This could ultimately increase insurance costs.

Where are home buyers going?

To determine where homebuyers are moving, Redfin looks at net flow.

The analysis could be summarized by the following formula:

Additional users looking to move into an area, minus those looking to leave.

So where are home buyers going?

Sacramento, California; Las Vegas; and Orlando, Florida, were among the most popular destinations for those moving.

So Florida is by far the most popular state overall.

The general trend is that the cities buyers are moving to tend to be more affordable.

To be more precise, here are the first destinations:

Sacramento, CA

Las Vegas, NV

Orlando, FL

Myrtle Beach, SC

North-Port, Sarasota, FL

Portland, ME

Tampa, FL

Cape Coral, FL

Miami, FL

Salisbury, MD

In conclusion, note that the majority of buyers looking to move are from New York.

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Which regions are they leaving?

For the first time, more buyers looked to leave Austin, Texas, rather than move there, with departures doubling from 2022.

Austin has long been a magnet, fueling strong growth and high prices. Until their peak in mid-2022, real estate prices had climbed 75% above pre-pandemic levels. Part of the increase in departures is due to remote work.

Other places buyers are heading include major cities like San Francisco, New York and Los Angeles.

What concrete impact on the real estate market?

Although average house prices have fallen from their 2022 peak, they remain high.

The average home price in the third quarter was $513,400, down from $547,800 in the same period a year earlier, according to the latest data from the Federal Reserve.

Prices in major metropolitan areas are even higher, and many buyers are purchasing in less expensive locations, Redfin says.

It's a trend that's been going on for a while.

Meanwhile, mortgage rates remain at levels not seen since the early 2000s, further pushing up borrowing costs. Although the Fed has suspended rate hikes for now, it indicated in its official statement that it is unclear how the market will react to its policies or when the effects will be felt.

However, not all buyers are moving because of affordable prices. Some simply want more space.

“I want a bigger house and a better quality of life.” This is the kind of comment real estate agents might hear.

Some even buy houses to rent out before moving in later.