Residents Relocating From San Francisco, Los Angeles To Low-Cost of Living Areas
Homeowners seeking more affordable housing are emigrating in large numbers from expensive coastal California cities like San Francisco and Los Angeles.
In October 2023, San Francisco, Los Angeles, and San Diego ranked first, third, and tenth among metropolitan areas for outmigration, with net outmigration of homebuyers of 25,700, 23,500, and 2,100, respectively. With a net inflow of 5,000 homebuyers in October, Sacramento is the most popular destination for San Francisco residents, while Las Vegas is the most popular destination for Los Angeles residents, with a net inflow of 4,000 homebuyers in the same month.
People are looking to buy homes to raise their families as the cost of housing in California rises.
Nashville broke into the top ten markets for homebuyers, with Los Angeles being the most common place of origin. A typical Nashville home sold for $448,910 in October, this is about half the price of a typical Los Angeles home, which sold for $880,000.
These are the top places people are leaving to find a better place-
- San Francisco, California
- New York, New York
- Los Angeles, California
- Washington D.C.
- Chicago, Illinois
And, these are the top destinations of movers-
- Las Vegas, Nevada
- Phoenix, Arizona
- Tampa, Florida
- Orlando, Florida
- Sacramento, California
Increased mortgage rates have altered the dynamics of the entire housing market; as of June 2022, the average was 6.7%, up from 5.5% a year earlier and 3% in early 2022. Since the pandemic homebuying frenzy, which was fueled by record-low rates and remote work, high rates have slowed the market considerably, but they have also increased the allure of reasonably priced metro areas.
