Rising mortgage rates, skyrocketing rents pushing more homeowners to move
Miami was the most popular destination of all US metros to relocate to in January
A record number of homebuyers across the U.S. are looking to relocate, a trend that's likely to increase in 2022 as mortgage rates climb and rent prices skyrocket, according to Redfin.
Redfin reported Tuesday that 32.4% of its users were looking to move to a different metro area in January, outpacing the previous record of 31.5% reported in the first quarter of 2021.
CLICK HERE TO READ MORE ON FOX BUSINESS
It's also "significantly higher" than pre-pandemic times when only a quarter of homebuyers were looking to relocate.
Throughout the pandemic, an increasing number of homebuyers started relocating due to remote work policies and low mortgage rates, according to the technology-powered real estate agency. The combination of these factors gave homebuyers more buying power and flexibility, allowing them to "relocate to more affordable regions with more indoor and outdoor space," according to Redfin.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Miami Skyline with palm trees (iStock / iStock)
Now, with mortgage rates and rent prices on the rise, Redfin chief economist Daryl Fairweather projected that an increasing share of homebuyers will look to move in 2022 as well.
"With mortgage rates going up and rents skyrocketing, moving somewhere more affordable is one of the only ways for many Americans to stay within their housing budget," Fairweather said. "Even workers who are unable to work from home should feel confident about finding a job in a new location with the tight labor market."
In January, Miami was once again the most popular destination of all U.S. metros to relocate to. The area was also the most popular spot for homebuyers in the second half of 2021, according to Redfin.
New York City (iStock / iStock)
The other top destinations to move to in January were Phoenix, Tampa, Sacramento and Las Vegas, which were all "relatively affordable."
\HOME PRICES SURGED NEARLY 19% LAST YEAR, MARKING HIGHEST READ EVER
These metros are affordable when compared with coastal hubs like the San Francisco Bay Area and New York, where "home prices are rising rapidly," Redfin said.
In January, a typical home in Miami sold for $436,900, which is higher than the national median of $376,200. Comparatively, in New York, the median sale price last month was $655,000.