Trending...
- City of Tacoma Offers In-Person Workshop for Local Businesses on the Revolving Loan Fund Process
- City Council Confirms Appointment of Patti Jackson as Tacoma's Police Chief
- Council Votes on Pathways to Eviction Prevention for Spokane
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
- City of Spokane Proposes Directing Funding to Support Families Impacted by Civil Immigration Enforcement
- From Coffee to Commutes: sMiles App Now Pays Bitcoin for Every Gift Card Purchase
- Finland's Health Authority Launches '2-4-2' Gambling Risk Limits Ahead of Expected Advertising Boom
- Evluma Launches RoadMax Edge Streetlight Series, Advancing Urban Illumination and Energy Efficiency
- Dr. Billy B. Laun II Addresses Over 120 Dental Professionals at Annual Dental Meeting
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
- CCHR: Taxpayer Billions Wasted on Mental Health Research as Outcomes Deteriorate
- Digital Efficiency Consulting Group (DECG) Officially Launches
- Work 365 Delivers Purpose-Built Revenue Operations for Microsoft Cloud for US Government
- Meridianvale Unveils QarvioFin Public Beta: The First 'Glass Box' AI Operating System for Autonomous Finance
- Impact Space Inc launches I AM AI Ready:Free AI Literacy Platform Bridging the Global Digital Divide
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
- EPP Pricing Platform announces leadership transition to support long-term growth and continuity
- Stolen Hearts: Reclaiming Your Child From Parental Alienation (narcissistic abuse)
- Roshni Online Services Unveils Plans for Innovative Digital Consultation Platform
- City of Tacoma Offers In-Person Workshop for Local Businesses on the Revolving Loan Fund Process
- Wall Street Is Missing This One: Cycurion (NAS DAQ: CYCU) Gets $7 Price Target While Trading at a Steep Discount
- Aries Industries Streamlines Sewer Inspection Process With Introduction of the LETS Sidewinder
- Chronic Boss Awards Scholarships to Student Founders Living with Chronic Conditions
- Nest Finders Property Management Named #1 in Jacksonville and Ranked #99 Nationwide
- City Council Confirms Appointment of Patti Jackson as Tacoma's Police Chief
- Nashville International Chopin Piano Competition Launches First Amateur Edition
- Council Votes on Pathways to Eviction Prevention for Spokane
- Market Value Enhancement From 2 Important New US Patents Issued for Strengthening Hair Enzyme Booster Technology to Caring Brands (NAS DAQ: CABR)
- Dr. Billy Laun Will Be Attending An Advanced Airway Management Course by AIME
- HELM Audio™ Partners with PQCrypto to Future-Proof Children's Hearing and Safety Data Using Post-Quantum Cryptography
- Wala Blegay to Announce Run for Congress in Maryland's 5th District on Feb. 4
- Luxury Lake-View Home Launches in Kissimmee's Bellalago community, Offering Privacy, Space, and Florida Resort-Style Living
- 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