25% of U.S. Homebuyers Are Looking To Relocate — Why Buyers Are Choosing Las Vegas
The Great Migration that began during the pandemic, with people moving from major metropolitan areas into smaller cities or suburbs, continues. A new study from Redfin shows that 25% of homebuyers are seeking to relocate this summer.
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The real estate website looked at data from Redfin users who viewed homes for sale across 100 metro areas from April 2023 to June 2023. Year-over-year, the percentage of Redfin shoppers relocating is down by 7.5%, which the site attributes to higher mortgage rates. But even fewer users are opting to stay in their current metro area, with that figure down 18% in the past year.
Where Are People Moving To?
Although Florida towns like Tampa, Orlando, Miami, North Port-Sarasota and Cape Coral make up half the list, a new addition hit the number one spot for people seeking to relocate.
Las Vegas is the number one city for homebuyers who are relocating, with 5,700 new residents. The majority of those settling in Las Vegas come from Los Angeles, California, where the average home price is nearly double that of Vegas, Redfin reported.
The median sale price of a home in Vegas is $412,000, compared to $975,000 in Los Angeles and more than $1.4 million in San Francisco. June’s average mortgage rate of 6.7% drives the monthly mortgage payment for L.A. and San Francisco homes up to $6,439 and $9,281, respectively. Meanwhile, a similar house in Vegas will cost only $2,721 per month.
Affordability Is Key
It’s no surprise people are purchasing less expensive homes. Roughly 20% of people relocating said they are doing so for a lower overall cost of living, according to a Redfin survey conducted by Qualtrics. Another 15% wanted a better deal on a house, and 13% said they couldn’t afford to buy a house or afford the cost of living, overall, in their previous area.
Nine out of 10 cities people are moving to are situated in the Sun Belt. Climate change, the risk of flooding and heat waves aren’t scaring homebuyers away. In fact, only 4% of homebuyers in the U.S. who relocated in the past year said they were concerned about climate change. The fear of flooding, hurricanes, and year-round storms, which can drive up home insurance prices or even make it harder to insure a home, seems to pale in comparison to affordability concerns.
Top 10 Metro Areas Where People Are Moving
These are the top 10 metro areas people are moving to based on Redfin’s latest research:
Las Vegas, NV
Phoenix, AZ
Tampa, FL
Orlando, FL
Sacramento, CA
North Port-Sarasota, FL
Cape Coral, FL
Dallas, TX
Miami, FL
Houston, TX
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This article originally appeared on GOBankingRates.com: 25% of U.S. Homebuyers Are Looking To Relocate — Why Buyers Are Choosing Las Vegas
