Trending...
- Spokane City Council Members Introduce "Immigration Enforcement Free Zones"
- Welfare Check Leads To Domestic Violence Arrest; Guns and Drugs Recovered At North Spokane Apartment
- New Threat Management Workshop Brings Hands-On BTAM Training to Spokane Valley
SEATTLE--(BUSINESS WIRE)--(NASDAQ: RDFN) — The most popular U.S. migration destinations tend to have high rates of inflation, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Atlanta, the 10th most popular migration destination in the fourth quarter, saw prices of goods and services increase by 8.9% year over year during the same period, the highest inflation rate of all the metros included in Redfin's analysis.
Phoenix, with an 8.4% year over year increase in prices, came in number two for both inflation and migration in the fourth quarter. In Tampa—the fifth most popular destination—prices rose 8% year over year, the third highest inflation rate.
On the flip side, San Francisco, the number-one place Americans moved away from during the fourth quarter, had the lowest inflation rate (4%). New York, which had the second-lowest inflation rate (4.6%), ranked number three on the list of places people are leaving, and Los Angeles—number two on the list of places people are leaving—had the seventh-lowest inflation rate (6%).
Home prices are rising particularly quickly in the most popular migration destinations, one contributor to inflation. For instance, Atlanta home prices were up 22.8% year over year in December, compared with a 10.3% increase in San Francisco.
Redfin's report is based on its analysis of the correlation between inflation and migration in metro areas where inflation data is available. The analysis measures the popularity of migration destinations by net inflow, or how many more Redfin.com users are looking to move into a metro area than move out of it. Inflation rates are measured by the Consumer Price Index, the average change over time in prices for goods and services such as fuel, energy and fuel.
National consumer prices jumped 7% in December from a year earlier, reaching their highest level in nearly 40 years. Policymakers consider 2% an acceptable level of inflation.
More on Washingtoner
As an example of varying inflation rates in different areas, gas prices were up 67.2% year over year in December in the Phoenix metro, and prices of cars and trucks were up 34.4%. Prices also rose in the Los Angeles metro, the number-one origin for people moving to Phoenix, but not as much: gas prices were up 46.5%, and the price of cars and trucks increased by 13.7%.
"Migration is one reason among many why the cost of everything from food to fuel is rising," said Redfin Deputy Chief Economist Taylor Marr. "An influx of people moving to a popular, relatively affordable place like Atlanta increases demand for housing and transportation, pushing up prices on those things and contributing to soaring prices on everything else, from food to utility bills."
"A person moving from New York City to Atlanta will probably enjoy lower housing costs in their new hometown. That means they're able to spend more on other things, which in turn means local businesses can charge higher prices," Marr continued. "The new residents are winners because the cost of living is still low compared to where they came from, even with higher inflation. A lot of locals are also winners because they have more home equity, or maybe their business has improved because they have more customers. But some locals, especially renters and people with jobs that require them to commute, are worse off due to rising rents and soaring prices on everyday expenses like gas in the car and groceries and wages that haven't kept up."
Wages in Atlanta were up 3% year over year as of September 2021, compared with a 4.6% nationwide increase. With a nearly 9% inflation rate in Atlanta, locals have less disposable income than they did last year. But at the same time, Atlanta's unemployment rate was just 2.2% as of November, compared with the national average of 3.9%, illustrating the area's relatively strong economy.
As more Americans move to affordable metros, rapidly rising prices will diminish the financial advantage of relocating
The financial advantage of living in places like Phoenix and Tampa is likely to fade as more and more people relocate, which will eventually slow migration.
"Residents moving away and less demand for goods and services is one reason why inflation is lower in places like New York and Los Angeles," Marr said. "Over time, higher inflation in Phoenix than Los Angeles, for example, will diminish the financial advantage of living in Phoenix. The flow of people moving from traditionally expensive cities to more affordable areas will slow down because, quite simply, prices are rising so fast that those places won't be as affordable anymore."
More on Washingtoner
Migration and inflation have become more correlated since the pandemic started
As the share of Americans moving to different parts of the country has increased over the last two years, so has the relationship between migration and inflation.
Although there was a small correlation between popular migration destinations and high inflation rates from 2010 to 2020, the relationship has grown since the start of the pandemic. Nearly half (43%) of the variation in inflation rates between metro areas in 2021 can be explained by domestic migration. In the preceding decade, a much smaller share–24%–of the variation could be explained by migration.
To read the full report, including charts and graphs, please visit: https://www.redfin.com/news/migration-inflation-analysis-Q4-2021/
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.
Contacts
Redfin Journalist Services:
Angela Cherry, 913-638-8249
press@redfin.com
Phoenix, with an 8.4% year over year increase in prices, came in number two for both inflation and migration in the fourth quarter. In Tampa—the fifth most popular destination—prices rose 8% year over year, the third highest inflation rate.
On the flip side, San Francisco, the number-one place Americans moved away from during the fourth quarter, had the lowest inflation rate (4%). New York, which had the second-lowest inflation rate (4.6%), ranked number three on the list of places people are leaving, and Los Angeles—number two on the list of places people are leaving—had the seventh-lowest inflation rate (6%).
Home prices are rising particularly quickly in the most popular migration destinations, one contributor to inflation. For instance, Atlanta home prices were up 22.8% year over year in December, compared with a 10.3% increase in San Francisco.
Redfin's report is based on its analysis of the correlation between inflation and migration in metro areas where inflation data is available. The analysis measures the popularity of migration destinations by net inflow, or how many more Redfin.com users are looking to move into a metro area than move out of it. Inflation rates are measured by the Consumer Price Index, the average change over time in prices for goods and services such as fuel, energy and fuel.
National consumer prices jumped 7% in December from a year earlier, reaching their highest level in nearly 40 years. Policymakers consider 2% an acceptable level of inflation.
More on Washingtoner
- Costa Oil Named Primary Sponsor of Carson Ware for the United Rentals 300 at Daytona International Speedway
- HBMHCW Expande Infraestructura de Cumplimiento para Argentina mientras América Latina Supera $1.5 Billones en Volumen Cripto
- Norisia Launches AI Formulated Luxury Multivitamin to Transform Daily Wellness in the UK
- City of Tacoma Invites Community Input on Proposals to Modernize Housing, Zoning, and Land Use Codes for 2026
- Tacoma: Mayor Anders Ibsen to Deliver First State of the City Address on March 4
As an example of varying inflation rates in different areas, gas prices were up 67.2% year over year in December in the Phoenix metro, and prices of cars and trucks were up 34.4%. Prices also rose in the Los Angeles metro, the number-one origin for people moving to Phoenix, but not as much: gas prices were up 46.5%, and the price of cars and trucks increased by 13.7%.
"Migration is one reason among many why the cost of everything from food to fuel is rising," said Redfin Deputy Chief Economist Taylor Marr. "An influx of people moving to a popular, relatively affordable place like Atlanta increases demand for housing and transportation, pushing up prices on those things and contributing to soaring prices on everything else, from food to utility bills."
"A person moving from New York City to Atlanta will probably enjoy lower housing costs in their new hometown. That means they're able to spend more on other things, which in turn means local businesses can charge higher prices," Marr continued. "The new residents are winners because the cost of living is still low compared to where they came from, even with higher inflation. A lot of locals are also winners because they have more home equity, or maybe their business has improved because they have more customers. But some locals, especially renters and people with jobs that require them to commute, are worse off due to rising rents and soaring prices on everyday expenses like gas in the car and groceries and wages that haven't kept up."
Wages in Atlanta were up 3% year over year as of September 2021, compared with a 4.6% nationwide increase. With a nearly 9% inflation rate in Atlanta, locals have less disposable income than they did last year. But at the same time, Atlanta's unemployment rate was just 2.2% as of November, compared with the national average of 3.9%, illustrating the area's relatively strong economy.
As more Americans move to affordable metros, rapidly rising prices will diminish the financial advantage of relocating
The financial advantage of living in places like Phoenix and Tampa is likely to fade as more and more people relocate, which will eventually slow migration.
"Residents moving away and less demand for goods and services is one reason why inflation is lower in places like New York and Los Angeles," Marr said. "Over time, higher inflation in Phoenix than Los Angeles, for example, will diminish the financial advantage of living in Phoenix. The flow of people moving from traditionally expensive cities to more affordable areas will slow down because, quite simply, prices are rising so fast that those places won't be as affordable anymore."
More on Washingtoner
- Jacob Emrani's Annual "Supper Bowl" Expected To Donate Thousands Of Meals
- NASA / Glenn Research Center Collaboration to Help Meet Rising Demand for Space Energy Beaming Tech / CIGS PV Modules from Ascent Solar: NAS DAQ: ASTI
- When Interpretation Becomes Conversation: Rethinking Engagement in the Museum Age
- Half of Finnish Online Gambling Expenditure Now Flows to Offshore Instant Casinos as License Applications Open March 1, 2026
- RTC Communications Completes Next Level Connect Fiber Expansion Bringing Multi-Gig Broadband to West Boggs Community
Migration and inflation have become more correlated since the pandemic started
As the share of Americans moving to different parts of the country has increased over the last two years, so has the relationship between migration and inflation.
Although there was a small correlation between popular migration destinations and high inflation rates from 2010 to 2020, the relationship has grown since the start of the pandemic. Nearly half (43%) of the variation in inflation rates between metro areas in 2021 can be explained by domestic migration. In the preceding decade, a much smaller share–24%–of the variation could be explained by migration.
To read the full report, including charts and graphs, please visit: https://www.redfin.com/news/migration-inflation-analysis-Q4-2021/
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.
Contacts
Redfin Journalist Services:
Angela Cherry, 913-638-8249
press@redfin.com
0 Comments
Latest on Washingtoner
- Sleep Basil Launches Revamped Diamond Mattress Collection Page, Highlighting Performance, Craftsmanship, and Personalized Comfort
- Sleep Basil Curates a Clearer Brooklyn Bedding Experience for Performance-Minded Denver Sleepers
- Spokane City Council Members Introduce "Immigration Enforcement Free Zones"
- Spokane: Mayor Brown Calls on Congress to Extend Temporary Protected Status for Haitian Community Members
- Nevada Man Launches Nationwide Animal Abuse Registry
- New Threat Management Workshop Brings Hands-On BTAM Training to Spokane Valley
- Star-powered Kappa Takeover Weekend Returns to the DMV June 18- 21, 2026, Hosted By Comedian Joe Clair W/ Dj Quick Silva (the Party Kingpin)
- Tacoma: Homicide Investigation – 1200 Block of South I Street
- Welfare Check Leads To Domestic Violence Arrest; Guns and Drugs Recovered At North Spokane Apartment
- Scoop Social Co. Wins The Knot and WeddingWire Awards as Brand Expands Nationwide
- Denise Murphy Lenci Promoted to Century Fasteners Corp. – General Manager, Northeast Sales
- TiNY Puts Real Pets on the Payroll for New PetArmor Campaign
- P‑Wave Classics Launches Definitive New Edition of Hannah Webster Foster's The Coquette
- Strategic Expansion with 3 New Alliances — Jefferson Beach Yacht Sales, CFR YS & flyExclusive Incentive Partnership: Off The Hook YS: (N Y S E: OTH)
- Super League (N A S D A Q: SLE) Advances AI-Driven Playable Media with AdArcade, Solsten, and Meta-Stadiums Partnerships, Plus Roblox Theatre Launch
- purelyIV Expands Concierge Wellness Platform with New IV Therapies, Memberships, and Digital Experience
- CCHR: Europe Rejects Forced Psychiatry—Landmark Vote Declares Coercive Practices Incompatible with Human Rights
- Crossroads4Hope Kicks Off Its 25th Year of Caring with the Launch of Free Breast and Colorectal Cancer Resources for Patients and Families Nationwide
- OpenSSL Corporation Advisory Committees' Elections 2026: Voting Now Open
- Good Vibes Club and Instant IP Forge Strategic Partnership to Secure IP Brand Value in a Booming Digital Economy