More than a third of people searching Redfin.com for Phoenix Houses last quarter were out-of-towners
*Combined statistical regions with 500 users in Q1 2019
†Among the one million users sampled for this analysis only
“It is very rare for me to fulfill a home-buying client who was born or raised from Phoenix or even elsewhere in Arizona,” said Phoenix area Redfin agent Heather Corley. “So many individuals are coming here from expensive cities like Los Angeles, San Francisco and Seattle for our low cost of living and excellent weather. The trend is truly growing recently because of strong job growth and companies like Allstate, Intel, Boeing, Microsoft and Facebook moving into the region.”
Each of the best migration destinations are attracting large crowds from California and New York–just two countries with a number of the highest tax burdens in the country . Austin continued to attract a great deal of individuals from San Francisco as major tech companies like Google, Apple and Amazon all announced plans to enlarge their presence in the fashionable Texas city. When house searchers are currently looking to leave their metro area, they tend to stick to the shore. Whereas Atlanta, Miami, and Raleigh are drawing folks, Las Vegas and phoenix are bringing individuals from Los Angeles.
Twenty-five percentage of Redfin.com home searchers seemed to proceed to a different metro area from the first quarter of 2019, in contrast to 23 percent during precisely the same period last year. The federal share of home-searchers appearing to relocate sits at its greatest level on record, linked with the fourth quarter of 2018. The most recent migration analysis relies on a sample of more than 1 million Redfin.com consumers who searched for houses across 87 metro areas from January through March.
Moving Out — Metros using the Highest Net Outflow of Redfin Users
“Most of the buyers I utilize are moving away from expensive places in California to escape high traffic, taxes, along with natural disasters,” said Phoenix region Redfin representative Van Welborn. Vincent Shook, a different Phoenix Redfin representative added:”When a California resident visits Phoenix and sees how much more house they could afford here, it really gives them something to think about. In addition, Phoenix property taxation are just so much lower.”
†Negative values indicate a net outflow; among the one million users sampled for this investigation only
*Joined statistical regions with 500 users in Q1 2019
The significant uptick in migration is beginning to have an impact on the Phoenix area. “The increase in out-of-state buyers will be unquestionably driving costs up,” explained Corley. “We are seeing a lot more houses available which receive several offers, and several times we are competing with all-cash buyers”
Moving In — Metros with the Greatest Net Inflow of Redfin Users
Because Redfin began reporting net migration data in early 2017 inflow for Phoenix struck 7,949 — the net inflow on record for Phoenix, but for almost any metro region. The share of homebuyers hunting at the Phoenix metro region in other metro areas also hit a fresh high of 34.5% in the first quarter, just edging past the previous high of 34.0 percent in the second quarter of 2018.
Below is an interactive application to see where people are trying to go and in which folks are coming out more than 80 U.S. metros. Find your town by clicking the drop down menu:
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Table: Top 10 Metros by Web Inflow of Clients and Their Best Origins
|Rank||Metro*||Web Inflow 2019 Q1†||Net Inflow 2018 Q1||Part of info from Users Outside the Metro 2019 Q1||Portion of info from Users Outside the Metro 2018 Q1||Top Origin||Very Best Out-of-State Origin|
|1||Phoenix, AZ||7,949||6,097||34.5%||33.6percent||Los Angeles, CA||Los Angeles, CA|
|2||Sacramento, CA||5,987||4,684||41.7%||39.5percent||San Francisco, CA||Seattle, WA|
|3||Atlanta, GA||5,402||4,205||26.2percent||26.3%||New York, NY||New York, NY|
|4||Austin, TX||4,447||2,402||31.7%||26.7%||San Francisco, CA||San Francisco, CA|
|5||Miami, FL||4,400||3,024||28.4%||27.7percent||New York, NY||New York, NY|
|6||Las Vegas, NV||3,987||4,189||43.1%||43.6%||Los Angeles, CA||Los Angeles, CA|
|7||Dallas, TX||3,797||2,312||24.1percent||23.0percent||Los Angeles, CA||Los Angeles, CA|
|8||Tampa, FL||3,536||1,802||55.8%||43.9%||New York, NY||New York, NY|
|9||San Diego, CA||2,817||2,065||23.8%||24.3percent||Los Angeles, CA||Seattle, WA|
|10||Raleigh, NC||2,482||1,602||31.1percent||28.3percent||New York, NY||New York, NY|
Perennial resources of out-migration New York, San Francisco, Los Angeles and Washington, D.C., topped the list of metros folks looked to depart, posting the highest net outflows from the first quarter. Net outflow is defined as the quantity of people seeking to leave the subway minus the amount.
“People are far more optimistic about the economy and feel financially secure enough to earn a cross-country move into a subway where their money goes farther,” explained Redfin chief economist Daryl Fairweather. As more employees move to those places, there is a chicken and egg phenomenon in which more businesses open offices, which attracts even more employees.”
Phoenix re-took the number one spot on this list of metro regions, beating out Sacramento using the greatest net inflow of Redfin users in the initial quarter. A web inflow means more people are wanting to move in than depart, while a net outflow means that there are folks seeking to leave.