The majority of homeowners in the United States are leaving Chicago and New York City to greener pastures in Florida, real estate brokerage Redfin reported.
According to the real estate firm, Miami and Tampa, two of Florida’s most populous cities, saw the highest net inflow of homebuyers in the second quarter of 2022, followed by Phoenix, Arizona, Sacramento, California, and Las Vegas, Nevada. Other cities in the Sunshine State, including Cape Coral and North Port, are also seeing a massive influx of new homebuyers from across the country.
“Tampa is still attracting a lot of out-of-state homebuyers, coming from places like New York, who can get more for their money in Florida,” said Eric Auciello, a Redfin manager in the report. “The spike in mortgage rates has priced some buyers out of the market, but it has also helped ease competition and curb bidding wars between locals and out of towners.”
Florida topped the nation’s largest net domestic migration figures between July 2020 and July 2021, seeing over 220,000 people moving to the state, followed by Texas and Arizona.
Redfin attributes higher living expenses and surging real estate prices as major factors behind homebuyers’ decisions to move out of Democrat-run states. As detailed by the firm, typical home prices in San Francisco can cost upwards of $1.5 million. Working from home, which became popular following the COVID-19 pandemic, has also contributed to residents’ shifts to more affordable locations.
California, Illinois, and New York, meanwhile, saw the largest migrations out of their respective states — where violent crime continues to surge throughout major metropolitan cities.
New York City saw a 15% rise year-over-year by the end of 2021, with homicides rising by 42% over two years. Chicago has also seen record highs in homicides, racking up 797 homicides in 2021, the highest of any U.S. city.
The higher costs and rise in crime have contributed to corporate departures from Blue states. Hedge fund asset manager Citadel; construction machinery manufacturer Caterpillar; and Boeing are moving their operations from Chicago to Florida, Texas, and Virginia, respectively.
“If people aren’t safe here, they’re not going to live here,” stated Ken Griffin, the founder of Citadel, in June. “I’ve had multiple colleagues mugged at gunpoint. I’ve had a colleague stabbed on the way to work. Countless issues of burglary. I mean, that’s a really difficult backdrop with which to draw talent to your city from.”