Nationwide, 27.8% of Redfin.com users looked to move to another metro area in 2020, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. That’s up from 25.5% in 2019, a 9% year-over-year increase. The increase is driven by people leaving expensive coastal areas for relatively affordable places. And the city with the biggest net inflow of new residents in 2020 was Phoenix.
The uptick in migration is exacerbating the severe shortage of homes for sale in 2021. In December, supply was down a record 34% year over year nationwide. The supply of homes for sale is down by double digits from last year in all 10 of the nation’s most popular migration destinations, including Phoenix, Austin, Las Vegas and a handful of southeastern metros. Meanwhile, the only areas supply is up are the places people are leaving: the San Francisco Bay Area, New York and Los Angeles.
“People aren’t moving to places with more homes available to buy; they’re moving to places with more affordable homes to buy,” said Redfin chief economist Daryl Fairweather. “Remote workers leaving expensive places for relatively affordable areas, partly because the allure of more house for less money is strong, is exacerbating housing supply shortages in more affordable parts of the country. The inventory crunch in popular destinations could intensify over the next few years as remote workers continue to relocate and buy homes. If developers, zoning boards and local governments prioritize building homes in the affordable areas people are moving into as opposed to coastal cities, that would help combat the housing shortage.”
Relatively affordable southern and southwestern metros gained the most residents in 2020, and they all experienced double-digit supply drops
Phoenix gained roughly 80,000 new residents in 2020, a bigger net inflow than any other metro area. Next come Dallas, with a net inflow of 75,000, and Orlando, which welcomed 60,000 new residents. They’re followed by Tampa, Austin, Las Vegas, Atlanta, Greenville, SC, Charlotte and Knoxville.
Those are all relatively affordable areas, with the typical home selling for close to or less than the national median of $335,000. Southern metros dominate the most popular destinations, and they’re joined by two Southwestern places—Phoenix and Las Vegas—that are popular with people leaving coastal California.
The number of homes for sale in December was down by at least 16% from the year before in all 10 of the most popular migration destinations. Housing supply was down 18% year over year in Phoenix, 35.7% in Dallas and 16.3% in Orlando. Inventory was down in 83 of the 88 metros included in Redfin’s housing inventory analysis.
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