Nashville, Tennessee has emerged as the ninth most popular migration destination for homebuyers in October, according to a new report by Redfin. This marks the city’s first appearance on the list since 2021, with most new arrivals hailing from Los Angeles, California.
The typical home sold in Nashville in October was priced at $448,910, a stark contrast to the median home price in Los Angeles of $880,000. This affordability is driving an increasing number of buyers to consider Nashville and similar markets for relocation.
Sacramento, California topped the list as the most popular migration destination in October. With a median home price of $578,000, Sacramento offers a significantly lower cost of living compared to San Francisco, where the typical home costs a staggering $1.5 million.
Las Vegas, Nevada and Orlando, Florida ranked second and third, followed by Myrtle Beach, South Carolina, which made its debut on Redfin’s list in July at the ninth spot. Florida proved particularly popular, with North Port-Sarasota, Cape Coral, and Tampa also making it to the top 10.
These destinations share common traits: they are more affordable than the cities from which the majority of relocating homebuyers originate, they are located in the Sun Belt region, and they face escalating climate risks. For instance, Florida faces threats from hurricanes and flooding, while Sacramento and Las Vegas grapple with high heat. These climate risks have led insurers to withdraw from these areas in recent months.
Meanwhile, homebuyers are increasingly leaving expensive cities like San Francisco, New York, and Los Angeles. This trend is driven by the search for more affordable housing options. For example, many people are leaving Los Angeles to move to Las Vegas, where homes are roughly half the price.
Interestingly, while San Francisco witnessed a net population outflow in October, the exodus was significantly smaller than the previous year. This is likely due to falling home prices, which have attracted some buyers back to the market. The city’s median home sale price in October was nearly 10% below the record high in April 2022.
Nationwide, the percentage of Redfin.com users looking to move to a different metro area decreased from 25.9% in September to 24.7% in October, marking the largest month-over-month drop on record. Still, this figure remains higher than pre-pandemic levels, due to increasing housing affordability challenges.
Despite the recent drop in mortgage rates, the cost of relocating has risen in recent months. The 30-year-fixed mortgage rate in October reached 7.79%, the highest level in 23 years, and home prices were up 3.5% from a year earlier. These factors have resulted in a year-over-year decrease of 7.9% in the number of Redfin.com users looking to move away from their metro area in October.
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