Trending...
- New Home of the Month: Spacious Luxury Meets Modern Design in The Bristol at Heritage at Manalapan
- Tacoma: Homicide Investigation – 1200 block of South M Street
- Curious About Mensa? DFW Event Offers a 1-Day Immersion
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
- Community, Conservation & Waterwise Inspiration Bloom on June 6
- Industrial and systems engineers celebrate key leaders in the field at IISE Annual Conference
- Cosanostra Miami Rises as the Best Latin Nightclub in Miami in Under Two Years From its Opening
- CCHR Leader's 50-Year Fight for Psychiatric Drug Victims Gains National Momentum
- Author Releases 7-Day Screen Time Reset for Families as Teachers Worldwide Report Children "Struggling to Grasp Basic Concepts"
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
- Men's Health Month Begins with Record Proclamations, AP News Coverage, & National Momentum for Men's Health
- AdvisorVault Adds Social Media Archiving to its Consolidated D3P Service
- UK Financial Ltd Audits Full Ethereum Architecture Verifies Corporate Wallets and 19-Token Ecosystem Ahead of CoinMarketCap Filing for Global Ranking
- Spokane: Flags Lowered for the Victims of the Longview Tragedy
- Creative Investment Research Analysis Finds Slower GDP Growth, Rising Inflation
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
- Speaker and Certified Coach Syrena N. Williams Debuts Powerful New Book on Healing, Identity, and Wholeness
- Spokane: SPD Releases Name of Officer Involved in OIS on North Cincinnati
- Spokane: Civics 101: How To Engage With Council Workshop
- Bestselling author Diana Colleen Explores the Psychology of Billionaires in New Podcast Interview
- Kryptokasinot.io Raises Concerns Over Proposed Cryptocurrency Restrictions in Finland's Gambling Reform
- New Home of the Month: Spacious Luxury Meets Modern Design in The Bristol at Heritage at Manalapan
- The Calida Group Announces Sale of Ely at Fort Apache for $57.5 Million
- Summer Festivals in Gunma Prefecture: Song, Dance, and Vibrant Color – Get There Via Tobu Railway!
- Jetperch Introduces Joulescope JS320 Precision Energy Analyzer for Low-Power Embedded System Development
- AI-Powered Trading Bots Are Transforming Forex, Gold, and Digital Markets as DefiHash Expands Intelligent Quantitative Infrastructure
- Early Bird Registration Open for FLYING HY, the Top Hydrogen and Battery Electric Aviation Event
- Century Fasteners Corp. Hires Tony Marano as Director of Human Resources
- Accelerating Toward Commercialization as FDA Momentum, AI Neurotherapy & Manufacturing Expansion Drive Multi-Catalyst Growth Story; N A S D A Q: NRXP
- New Wisconsin Report Shows Most Plane Crashes Happen Outside Major Hubs
- Egypt Selects Gonzaga University and City of Spokane as Team Base Camp Training Site for FIFA World Cup 2026™
- Book Florida Keys Accommodations Early with KeysCaribbean and Save 15 Percent
- Color Card Administrator Highlights Growing Enterprise Demand for Workflow Orchestration in Enterprise Business Card Governance
- Tennessee Laws Lead with Psychotropic Drug Testing in Mass Shooting Cases and Comprehensive Reporting: CCHR Urges Nationwide Adoption
- Curious About Mensa? DFW Event Offers a 1-Day Immersion
- Tacoma: Applicants Sought for the Transportation Commission