Potential homebuyers leave Los Angeles for these two cities
- US News
- December 2, 2022
- No Comment
Rising mortgage rates and persistently high home prices are prompting residents of Los Angeles and other major cities to seek homes in less expensive metropolitan areas.
For Angelenos in particular, according to a study by Redfin, Las Vegas and San Diego have emerged as the two best places for people looking to buy a home in another city.
The real estate agency website noted that according to the study, a “net influx” of 7,000 Los Angeles-based home buyers wanted to buy homes in Las Vegas, while 6,800 wanted to buy in San Diego.
Net inflow is determined by taking the total number of Redfin home seekers planning to move into an area minus the number planning to leave the area.
“With a looming recession and high household spending, many people cannot afford to buy a home in an expensive area and/or want to save money in an emergency, making moving to a more affordable location an attractive option,” said Redfin Economic Research Director Chen Zhao .
Los Angeles isn’t the only metro area experiencing an exodus of potential homebuyers.
San Francisco had the largest possible exit numbers with a net outflow of 37,800. Next was Los Angeles with 33,600, followed by New York; Washington, D.C.; and Boston.
Overall, home buyers are generally looking for locations in more favorable, warmer climates, the study found.
The country’s top destination has been Sacramento, which despite its above-average home prices remains far cheaper than neighboring San Francisco.
“More than half of my buyers in Sacramento are from outside of the area,” said Redfin agent Samantha Rahman. “Most are Bay Area telecommuters who may have to commute to the office a few times a month but save significantly on housing costs.
The study also found that the increase in working from home since the pandemic has made it easier for people to search for homes in different metro areas.