Homebuyers are Leaving the Bay Area at Half the Pandemic-Era Rate

Far fewer homebuyers are leaving the Bay Area as life returns to pre-pandemic norms, with many tech companies requiring in-person work and the novelty of less expensive inland areas fading

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) — The Bay Area had a net outflow of 26,000 homebuyers in the fourth quarter, down 13% year over year, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. The analysis of home search activity on Redfin.com found the flow of homebuyers looking to move away from the Bay Area was down nearly 50% from its September 2021 peak during the pandemic-driven remote work boom.

“If San Francisco could talk, it would quote Mark Twain: ‘The reports of my death are greatly exaggerated,’” said Ali Mafi, a San Francisco Redfin Premier agent. “The news says it’s a ghost town, but restaurant reservations at foodie hotspots are impossible to get, and Dolores Park is packed on the weekend with residents and tourists. With the big boom in AI and many tech companies requiring in-person work, San Francisco is as alive as ever. Homes are getting multiple offers, and I see the market getting more competitive as the year goes on.”

Bay Area drops to second on list of places homebuyers are leaving

The Bay Area ranked second to Los Angeles on the list of metros homebuyers looked to leave in the fourth quarter. That marks the first quarter in over two years the Bay Area has dropped out of the number-one spot. This is determined by net outflow, a measure of how many more homebuyers are looking to leave a metro than move in.

The Bay Area’s slowing net outflow is due partly to local residents staying put. At the height of the pandemic, many homebuyers–especially remote tech workers–moved away in favor of more affordable inland areas like Sacramento and Austin, TX where they could get more bang for their buck. That’s not happening as much anymore, largely because major tech companies like Apple, Google and Meta are requiring workers to be in the office. The flow of homebuyers moving from the Bay Area to both Sacramento and Austin fell about 25% year over year in the fourth quarter.

Additionally, home prices have come down slightly, perhaps helping some people afford to buy in the area: The median sale price in San Francisco is still nearly $1.3 million, but that’s near its lowest level since early 2019.

To view the full report and methodology, visit: https://www.redfin.com/news/housing-san-francisco-migration-Q4-2023.

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We also run the country's #1 real estate brokerage site. Our home-buying customers see homes first with same day tours, and our lending and title services help them close quickly. Customers selling a home in certain markets can 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. Customers who buy and sell with Redfin pay a 1% listing fee, subject to minimums, less than half of what brokerages commonly charge. Since launching in 2006, we've saved customers more than $1.5 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240130885999/en/

Redfin Journalist Services:

Alina Ptaszynski

206-588-6863

press@redfin.com

Source: Redfin