For the first time since 2021 when Americans relocated in droves, Nashville once again is a top migration destination, according to a new report from Redfin.
Nashville, also known as Music City, is No. 9 on the list of the most popular destinations for homebuyers looking to relocate to a new metro area in October. Most people surveyed relocated there from Los Angeles.
“A lot of Nashville locals have been priced out of homeownership, but when you’re coming from somewhere like California or New York, housing prices here still seem reasonable,” Redfin Premier real estate agent Kristin Sanchez said in a statement. “Nashville has relatively low property taxes, insurance costs and utility prices, along with no state income tax, all of which definitely help if you’re looking for a lower cost of living.”
While a lot of Sanchez’s clients were from California, she also reported working with people from Chicago, New York and Florida. Housing affordability remains one of the strongest assets of the Nashville housing market, but many buyers also relocated for professional reasons. Big companies such as financial firm AllianceBernstein or Amazon have headquarters in the city.
The typical home in Nashville in October went for $448,910 compared to $880,000 in Los Angeles.
Sacramento, Las Vegas and Orlando were the most popular migration destinations in October
Sacramento, California, was the most popular destination among homebuyers relocating to a new metro area in October. Many people moving to Sacramento were from San Francisco, where the typical home costs $1.5 million versus the $578,000 in Sacramento.
Myrtle Beach, South Carolina, came in at No. 4 after appearing on Redfin’s list of most popular destinations for the first time in July at No. 9. Four Florida metros ranked in the top 10 in October: Orlando, North Port-Sarasota, Cape Coral and Tampa.
These metros have some elements in common: their affordability in comparison to outbound destinations, their location in the Sun Belt and their exposure to significant climate risks.
The rising threat posed by natural disasters such as hurricanes and flooding prompted many homeowners insurance providers to pull out from risk-prone areas in recent months. This could have a negative impact on home prices in those markets.
Homebuyers flee expensive cities
Homebuyers are deserting San Francisco, New York City and Los Angeles at a faster pace than any other metros in the United States. That’s according to a Redfin measure, the net outflow, which calculates how many more Redfin.com users are looking to leave a metro than move in.
It’s a common trend for people to leave expensive job centers in search of more affordable housing elsewhere. This explains why many homebuyers leaving Los Angeles chose to relocate to Las Vegas, where home prices are 50% lower.
However, some people are choosing to stay in expensive cities, especially when the median home sale price cools. San Francisco, for example, posted a net outflow of 25,700 in October 2023, down from 35,700 in October 2022.
Redfin attributes this decline to softening home prices in October, when the median home sale price was 10% below the record-high level in April 2022.