A record number of people from the country’s largest metropolitan areas, including New York City, Los Angeles and San Francisco, are flocking to smaller, more affordable cities amid the coronavirus pandemic, new data reveals.
A recent report by real estate company Redfin shows 27.4 per cent of website users were looking to move to smaller metro areas in the second quarter of 2020, with the top five destinations being Phoenix, Sacramento, Las Vegas, Austin and Atlanta.
The migration analysis was based on a sample of more than 1million Redfin users who searched for homes across 87 metro regions in the country between April and June.
Users must have viewed at least 10 homes in a particular region and 80 per cent of their searches must have been in that specific area, in order to be included in the data set.
The report found the majority of prospective homebuyers in these smaller, cheaper cities are coming from expensive, coastal regions such as New York City, LA and San Francisco – typical hotspots for young working professionals.
New York City was listed as the top metro area with largest net outflow in the second quarter of 2020, with 35.2 per cent of Redfin users looking to move elsewhere
A Redfin report found Atlanta was the top destination for New Yorkers looking to leave the metropolitan area
Redfin economist Taylor Marr said low mortgage rates and ‘changes in what people are looking for in a home’, are among the factors that are driving a surge in demand – as well as the new ability to work remotely.
‘Add in employers’ increasingly flexible remote work policies and the fact residents of many big coastal cities can’t fully enjoy their local amenities, and the people who have long wanted to live in a more affordable area or closer to family are incentivized to make the move soon,’ Marr said.
‘As we enter the second half of the year, I expect more people to move from one part of the country to another as the pandemic continues to influence people’s priorities and lifestyles.’
Marr however, noted that the pandemic-driven moves are likely to be temporary and not all who relocated will choose to make their new destination their permanent homes.
It comes as previous reports have shown how the coronavirus pandemic has pushed young professionals out of once-bustling cities and into suburban, more affordable areas after a grueling lockdown left them rethinking their appeal.
The metro area with the third largest outflow was Los Angeles, where 16 per cent of Redfin users were searching elsewhere, with the top out-of-state destination being Phoenix
Phoenix, Arizona, topped the list of cities with the largest net inflow, or people looking to move into the area, with the majority of prospective buyers coming from Los Angeles
TOP 10 CITIES WITH BIGGEST NET INFLOWS (PEOPLE MOVING IN)
TOP ORIGIN CITY OF HOMESEEKERS
TOP TEN CITIES WITH BIGGEST NET OUTFLOWS (PEOPLE MOVING OUT)
Relocation has also become easier now that the majority of workplaces, particularly office jobs, are allowing employees to work from home long-term.
The trend however, has reinforced the prospect that big cities could become shells of their former selves if companies choose to adopt the remote work model permanently.
In New York, real estate brokers have also reported a boom in home sales and rental activity in other parts of the state, including the Hamptons and in smaller towns upstate, as city-dwellers seek to escape the city.
Redfin’s findings show the migration of New York residents has extended to other parts of the country, including the south or southwest, like Austin and Phoenix.
‘We’re seeing tons of interest from clients moving to Austin from major cities on both coasts, particularly tech workers,’ Redfin agent Andrew Vallejo said.
The San Francisco Bay Area came second on the list, with 22.7 per cent of users wanting to go elsewhere and the top out-of-state destination was Seattle
Sacramento, California, had a net inflow of 8,935, with the majority of users coming from San Francisco
Las Vegas ranked third in the list of areas with the largest net inflow, with 7,136. With the majority of prospective homebuyers coming from Los Angeles
‘Buyers who have discovered they don’t love being quarantined in an apartment building in San Francisco or New York and can work remotely are looking for a house, and they can afford that here in Austin.
‘I have a client moving from the Bay Area who just closed on a home site unseen, and another client from Portland who is in the process of buying a home here,’ Vallejo added.
New York City was listed as the top metro area with largest net outflow, or number of people moving out, in the second quarter of 2020, with 35.2 per cent of Redfin users looking to move out of the area and the top destination being Atlanta.
Data shows New York City’s net outflow has actually decreased from last year, down from 39.8 per cent, however this is likely due to the fact that many New Yorkers have already left the area, according to Redfin.
San Francisco, home to the country’s tech hub, came second on the list, with 22.7 per cent of users wanting to leave the city and top destination being Sacramento. The top out-of-state destination was Seattle.
An earlier survey conducted by Blind found 69 per cent of New Yorkers in the tech and finance field would consider relocating if they knew they could work from home permanently
The metro area with the third largest outflow was Los Angeles, where 16 per cent of Redfin users were searching for homes outside of the city, with the top destination in the state being San Diego, and out-of-state destination being Phoenix.
The trend has also prompted people to relocate to destinations typically known as vacation hotspots or retiree destinations, permanently.
‘We have a lot of buyers moving to Palm Springs permanently from Los Angeles and Orange County because their employers have given them permission to work from home,’ local Redfin agent Nikki Byron said.
‘Palm Springs has historically been primarily a vacation home market with a lot of retirees, so it’s interesting to see the shift toward full-time residents. Buyers who are relocating from more expensive areas are happy to get a nice home with three bedrooms and outdoor space priced between $350,000 and $600,000.’
In May, a DailyMail.com report revealed young New Yorkers were fleeing the city and returning to their hometowns and the suburbs as coronavirus gripped the New York metropolitan area.
A survey conducted by anonymous professionals group Blind found 69 per cent of New Yorkers in the tech and finance field said they would consider relocating if they knew they could work from home permanently.
Cuomo begs wealthy New Yorkers to come back to save the city and pleads ‘I’ll buy you a drink!’ as he fights off calls to raise their taxes – which he fears may scare them away forever
BY JENNIFER SMITH FOR DAILYMAIL.COM
Gov. Andrew Cuomo is begging wealthy New Yorkers to return to the city to save it from economic ruin while fighting off calls from other lawmakers to raise their taxes, a move he fears could permanently drive the top 1 percent out of the city.
Many flocked to their second homes in the Hamptons or upstate, while others rented or bought new properties, abandoning their expensive city apartments.
A man washes a Mercedes G- Class on a deserted street on Manhattan’s Upper East Side. Many of New York City’s wealthiest residents left the city in March and have not returned
Retail on the UES has taken a hit along with the rest of the city. The state of NY is now staring down the barrel of a $30billion deficit over the next two years
Now, six months on with no end to the national nightmare in sight, many are laying down permanent roots. While New York has overcome its battle against the virus, the rest of the country – where lockdown rules have been far more relaxed – is seeing a resurgence.
It is preventing New York City from resuming its normal activity because Cuomo fears a second spike in cases will happen if just one person from a worse-affected state travels in and infects residents again.
At a press conference on interview on Tuesday, he said of the wealthiest residents who have long left the city: ‘They are in their Hamptons homes, or Hudson Valley or Connecticut.
‘I talk to them literally every day. I say. “When are you coming back? I’ll buy you a drink. I’ll cook,’ he said.
‘They’re not coming back right now. And you know what else they’re thinking, if I stay there, they pay a lower income tax because they don’t pay the New York City surcharge.
‘So, that would be a bad place if we had to go there,’ he said.
It is not unusual for Manhattan to clear out for the month of August, when temperatures between the skyscrapers soar and send many fleeing to Long Island’s beaches or further afield.
But this summer, with the ongoing lack of appeal in the city, the likelihood that people will come back in the fall is shrinking.
What is making matters worse are the increasing calls from other lawmakers to boost taxes on the city’s highest earners to try to plug the $30billion deficit that was left by the pandemic.
Cuomo said he is resisting the idea, that will send the already transient group of taxpayers running for the hills.
‘A single per cent of New York’s population pays half of the state’s taxes and they’re the most mobile people on the globe,’ he said.
He wants the federal government to step in with help in the final stimulus bill that is due to pass soon, and has warned that unless more financial aid is given, the country is on track for a ‘real recession’.
‘If they don’t make this bill right, frankly, they shouldn’t pass it because it will be the last bill.
‘If this bill does not have funding for state and local government you will see a real recession, not just in New York but across the country [by] forcing state and local governments to lay off people,’ he said.
Cuomo is also furious that the president has not issued guidance for the rest of the country.
He says that because Trump – who earlier this week responded ‘it is what it is’ when presented with the fact that thousands of Americans are still dying – remains in denial over how serious the virus is.
New York, he said, had done the work to squash the infection rate over the last six months but because no other states are doing the same, it still can’t return to its former glory.
‘Its so frustrating that … six months later … we are still talking about this on a such a level of ignorance and denial and are still so woefully unprepared,’ he said.
Meanwhile in the Hamptons, stores and restaurants are enjoying bustling trade from the well-heeled city dwellers who have fled there. Pictured, the village of Sag Harbor
‘Facts are facts. We see the numbers going up … We see experts saying, “We need to reset,” but the reset has to start at the top. We have confusion, we have chaos. I think the president has to stand up and say what he didn’t say six month ago.
‘That COVID is serious. That we can’t deny it. That it’s not political, and that it isn’t going to go away magically. That the way he handled it was wrong. It has to start with the president,’ he said.
Unless there is a national plan, Cuomo said the virus will continue to bounce from state to state.
‘You’ll see a ping-pong of this virus across the country unless you have a national strategy … Giving it back and forth to each other like family members,’ he fumed.
While Cuomo is begging New Yorkers to come back, those who have stayed in the city are outraged by his continuously harsh rules.
Most of Cuomo’s lockdown strategies have been embraced, but a recent decision to force bars to sell ‘substantial’ amounts of food to customers dining outdoors has sparked outrage.
It was prompted by a small number of the city’s bars and restaurants flouting social distancing rules to allow large crowds to gather – a clear COVID catalyst.
Rather than single in on those specific bars, Cuomo is now forcing everyone to serve large dishes with drinks which is putting the establishments that do comply with the rules in an impossible position.
Not all of them have kitchens, and customers – many of whom have seen their own disposable income reduced – do not want to pay for an entire meal when looking to go somewhere for a drink.
To get around the issue, some bars started selling $1 Cuomo fries or bags of peanuts.
Cuomo responded by telling them they had to serve more substantial amounts of food.
There was a huge exodus of residents from New York City at the start of the pandemic which was later compounded by the chaotic riots and looting that were triggered by George Floyd’s death.
The state’s tax base took an unprecedented beating with the sheer number of tenants who failed to pay rent on time or at all, and with almost no retail or dining occurring for the best part of three months.
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Record number of people from New York City, San Francisco and Los Angeles are looking for new homes in cheaper, smaller metro areas like Phoenix, Sacramento and Las Vegas as mortgage rates dip and working remotely becomes the new norm have 2489 words, post on www.dailymail.co.uk at August 5, 2020. This is cached page on Talk Vietnam. If you want remove this page, please contact us.