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Homebuyers are looking to relocate from two expensive California cities more than any other major metro in the U.S.
A new Redfin report found buyers were looking to leave San Francisco and Los Angeles, with 24% and 20% of local users searching elsewhere, respectively.
"Homebuyers typically leave expensive coastal job centers more than they leave other places, a trend that started before the pandemic and picked up steam due to remote work and rising housing costs. They most commonly head to more affordable regions. Sacramento, where homes cost less than half what they do in the Bay Area, is the most common destination for people [leaving] San Francisco, for instance," the report said.
The calculations were determined by net outflow — a measure of how many more Redfin users looked to leave an area than to move in.
The report's migration analysis was based on about 2 million Redfin users who viewed for-sale homes online across 100 metro areas from August through October, calculating the portion of overall home searchers that are migrants.
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A view looking north along Avalon Boulevard in South Los Angeles on Nov. 9, 2022. (Myung J. Chun / Los Angeles Times via Getty Images / Getty Images)
Next on the list were East Coast hubs, including New York City, the District of Columbia and Boston.
The Transamerica Pyramid and Sales Force tower in San Francisco are seen at sunset on Jan. 17, 2022. (Jane Tyska/Digital First Media/East Bay Times via Getty Images / Getty Images)
Sacramento, Las Vegas and Miami topped the report's list of where metro homebuyers using Redfin are looking to move to.
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Users are especially hoping to move to Florida and the Sun Belt, the report said.
An aerial view of Miami, where many renters reside in apartment buildings, on Sept. 29, 2021. (Joe Raedle/Getty Images / Getty Images)
"Relatively affordable Sun Belt metros are typically most popular with relocating homebuyers, largely because buyers can get more home for less money. In Las Vegas, for instance, the typical home cost $410,000 in October, roughly half the price of the typical home in Los Angeles ($823,000) — the most common origin for people moving there," Redfin said.
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Nearly one-quarter of U.S. homebuyers are reported to have looked to move to a different metro area in the three months ending in October, up roughly 18% from pre-pandemic 2019.
Many homebuyers are seeking affordability as mortgage rates and high home prices make areas even more expensive.