Thousands of homeowners in San Francisco, Los Angeles and Chicago are headed out of town.
And many of them are on the way to Atlanta, Phoenix and Dallas.
Home sales firm Redfin looked at migration by homeowners away from high-cost metro areas to more affordable markets. And the Dallas area was on the top 10 list of U.S. cities where residents are moving to find more affordable housing and living costs, researchers with the residential brokerage firm found.
The biggest share of newcomers to Dallas were from Los Angeles. Redfin said that almost a quarter of its home searches in the Dallas area were by people relocating to the area.
Austin and Houston are also getting a lot of home purchases by out-of-state movers.
A quarter of Redfin’s customers in the third quarter were moving to different metro areas.
“Rising mortgage rates are exacerbating affordability issues that have been driving people out of expensive coastal metros for the past few years,” Redfin chief economist Daryl Fairweather said in the report. “With [interest] rates no longer near historic lows, buyers are increasingly cost-conscious, seeking more affordable homes in low-tax states in the South and middle of the country.”
Sacramento, Calif.; Portland, Ore., Miami and Nashville also made the list of top markets for relocations, Redfin found.
The cities seeing the most moveouts include New York, Washington, D.C. and Denver. In those markets, more people were looking to leave compared with the number of people looking to move in.
“The metro areas seeing the biggest inflows of new residents are the big cities where home prices are still relatively affordable and job markets are strong,” Redfin researcher said.
With the median home price still slightly below the national average, Dallas-Fort Worth remains one of the most affordable big-city housing markets. And, despite home prices going up by more than 40 percent over the last five years, D-FW home costs are still well below what buyers pay in most coastal markets.
With employment growth this year of more than 100,000 jobs, the D-FW area continues to attract thousands of people each year.