Nature is witnessing the escalation of warm weather and the concurrent rise in the cost of living, prompting American households to skillfully navigate the intricate interplay between the consequences of climate change and their own financial stability.
The repercussions of climate change, including occurrences of extreme weather, wildfires, hurricanes, and escalating temperatures, are compelling factors behind the mounting array of expenses associated with daily life in the US. These costs include impacts on housing, insurance, energy bills, and food prices.
A recent study by Redfin reveals a migration trend as over 2 million Americans search for new homes between April 2023 and June 2023, with more than 30% citing climate change as a motivator for relocation. The attraction of warmer regions, including Phoenix, Orlando, and Miami, has led to a mass migration from pricier West and East Coast cities.
Based on the study’s findings, Phoenix emerged as a highly favored city among net newcomers, securing the second spot after Las Vegas. Notably, individuals from more expensive West and East Coast cities are actively exploring housing options in these locations.
Meanwhile, more homebuyers are leaving San Francisco, New York and Los Angeles than any other U.S. metro area, Redfin report reads.
Metro Phoenix, despite a big jump in home prices during the past decade, is still a deal for major metro U.S. areas. The median home price in the Seattle area, according to the National Association of Realtors, was $793,000 at the end of this year’s second quarter. Metro Phoenix’s second-quarter median was $464,000.
While a typical home in San Francisco is $1.335 million, San Jose’s median home price is almost four times as much as Phoenix’s at $1.8 million, whereas, San Diego’s median is $1.06 million, and the Los Angeles median is $789,000.
The median home prices in Dallas, Houston and Chicago are $389,000, $348,000 and $363,000 respectively. That’s why jobs, weather or lifestyle are likely drawing those residents and homebuyers to Arizona.
Florida’s population growth in recent years has made it the fastest-growing state for the first time since 1957, according to the U.S. Census. Similarly, while North Port-Sarasota, Cape Coral and Miami also made the top 10, Orlando was ranked No. 4 on Redfin’s list, after Tampa.
According to the real estate brokerage, almost half of the 5,300 searchers on Redfin checking out Phoenix area houses during June and July were from Seattle, however, Washington state overall doesn’t top the relocation list, as mentioned by Maricopa Association of Governments.
And, the survey also showed that around 2% of homebuyers using Redfin searched to move to metro Phoenix from other U.S. metro areas. According to the report, among home searches done by people living in the Phoenix area, 29% involved potential homebuyers who wanted to move away.
Dallas, Nashville and Miami were the top cities for people looking to leave Arizona’s Valley of the Sun.
California, according to the Maricopa Association of Governments, is the top state for new residents moving to the Phoenix area, whereas, Texas is No. 2 and Illinois No. 3, and the state of Washington is No. 4 on the Maricopa Association of Governments list.
Despite higher interest rates affecting homebuyers, Maricopa County experienced a significant influx of new residents last year, contributing to the region’s housing market resilience compared to other areas.