More People Are Moving in Than Out Places Facing Harsh Drought

More People Are Moving in Than Out of Places Experiencing Intense Drought

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  • 74% of U.S. metros with more than half of homes facing intense drought saw more people move in than out this year. 
  • An estimated $17 trillion worth of homes (about 25 million properties) experienced intense drought in August, up 42% from a year earlier.
  • There were 13 metros, including Las Vegas, Sacramento and Austin, where 100% of homes experienced intense drought in August. All but two have recently seen more people look to move in than out.

People are increasingly moving into drought-prone America. About three-quarters of U.S. metropolitan areas where more than half of homes experienced intense drought in August have seen more people move in than out in recent months.

In 34 of the 129 metros (26%) Redfin analyzed, more than 50% of homes experienced intense drought in mid-August. Twenty-five of those 34 metros (74%) saw net inflows in the second quarter. A net inflow means more Redfin.com users looked to move in than leave. 

Here’s how that compares to a year earlier: Just 23 of the 99 metros (23%) Redfin has 2021 data for had more than 50% of homes experiencing intense drought in mid-August 2021. Of those 23 metros, 16—or 70%—saw net inflows in the second quarter of 2021.

This is according to a Redfin analysis of roughly two million Redfin.com users who searched for homes across more than 100 metro areas in the second quarter, excluding searches unlikely to precede an actual relocation or home purchase. We used data from the U.S. Drought Monitor to calculate the share of homes in each metro that experienced severe, extreme or exceptional drought (referred to as “intense” drought in this report) during the second week of August 2022.

An estimated $17 trillion worth of homes (roughly 25 million properties) in the metros Redfin analyzed experienced intense drought in mid-August 2022, up 42% from $12 trillion (14 million properties) a year earlier. The increase was partly fueled by the surge in home prices over the past year, but is also related to where drought-prone properties are located. Los Angeles, San Jose and New York—three of the most expensive housing markets in the country—were among the metros with the largest number of homes facing intense drought in mid-August. Dallas, San Antonio and Sacramento, Sun Belt metros that have seen home values soar due to an influx of new residents, were also in the top 10.

Much of drought-prone America is located in the Sun Belt, which has ballooned in popularity in recent years as people have been priced out of expensive coastal cities. From 2016 through 2020, more people moved into than out of areas facing high risk from not only drought, but heat, fire and flood as well, a separate Redfin analysis found. The 50 U.S. counties with the largest share of homes facing high drought risk saw their populations increase by an average of 3.5% during that period due to positive net migration. This trend intensified during the pandemic as remote work made it more feasible to relocate to relatively affordable areas. Drought, too, has intensified, due to climate change. 

“Many people take climate risk into consideration when deciding where to live, but other factors, like affordability, often take precedence given that rent costs are rising and monthly mortgage payments for homebuyers are up nearly 40% from a year ago,” said Redfin Economist Sebastian Sandoval-Olascoaga. “Drought may also not be scaring people off to the same extent as fires or flooding, which can physically decimate homes. Still, homeowners and buyers should be aware that drought danger could ultimately dent their home’s value if a lack of water forces residents to leave en masse.”

Redfin.com now publishes climate-risk data for nearly every U.S. home, with the exception of rental listings, to help house hunters make more informed decisions. That includes risk scores for drought, fire, heat, flood and storm.

In Las Vegas, Sacramento and San Antonio, Influx of New Residents Coincides With Intense Drought

There were 13 metros where 100% of homes experienced severe, extreme or exceptional drought in mid-August: Las Vegas, Bakersfield, CA, Austin, TX, Killeen, TX, Visalia, CA, San Antonio, Dallas, Reno, NV, Chico, CA, Salt Lake City, Sacramento, CA, Fresno, CA and Salinas, CA. All but two of those metros—Visalia and Salt Lake City—saw more people look to move in than out in the second quarter.

Sacramento had the biggest net inflow among those 14 metros, with 9,640 more Redfin.com users looking to move in than leave in the second quarter. It was followed by Las Vegas, (8,597), San Antonio (5,335), Dallas (4,964) and Bakersfield (2,576). 

“Out-of-towners are still flocking to Vegas because they want lower taxes, cheaper groceries and gas, more affordable homes and less traffic. Moving to a lower-tax state is a good way to trim your spending at a time when virtually everything is becoming more expensive,” said local Redfin real estate agent Lori Garlick. “Homebuyers are expressing concerns about drought, especially now that the shrinking of Lake Mead is all over the news, but drought risk isn’t a dealbreaker for most of my clients. I did have one buyer back out of moving to Vegas because they were worried there wouldn’t be any water in a few years, but they ended up moving to Arizona, which is also endangered by drought.”

Nevada last year passed a law calling for the removal of “nonfunctional” grass by the end of 2026 in an effort to conserve water. And starting Sept. 1, Las Vegas homeowners won’t be able to have swimming pools larger than 600 square feet—a rule that could impact high-end homebuyers with ambitions for large pools.

“It will be interesting to see whether new water restrictions will affect migration to Las Vegas,” Garlick said. “Say you’re a green thumb from California who’s used to trees and lawns, and you’re wavering between drought-prone Las Vegas and drought-prone Colorado. The rules limiting vegetation in Vegas might cause you to opt for Colorado.”

An influx of migration is compounding climate dangers in some areas. In Utah, for example, population growth is one factor causing the Great Salt Lake to dry up. If it continues to recede, toxic chemicals in the lake bed could get picked up in wind storms and poison residents. The Salt Lake City metro experienced a net outflow in the second quarter, but surrounding areas, including Wasatch County, have seen their populations increase in recent years.

Metro-Level Drought Impact Summary: August 2022

Unless otherwise noted, data in the table below represents the second week of August 2022. The table is sorted by the “share of homes facing drought” column. Blank spaces indicate insufficient data for corresponding metros. Percentages are rounded up to the nearest tenth of a percent.

U.S. Metro AreaShare of Homes Facing DroughtNumber of Homes Facing DroughtEstimated Value of Homes Facing DroughtNet Inflow/Outflow (Q2 2022)Median Sale Price (July 2022)
Las Vegas, NV100.0%754,410$374,469,991,9018,597$430,000
Bakersfield, CA100.0%234,829$87,988,278,7092,576$350,000
Austin, TX100.0%676,803$474,369,169,3471,543$520,000
Killeen, TX100.0%135,156$39,842,036,174841$285,000
Visalia, CA100.0%115,828$41,373,249,458-167$360,528
San Antonio, TX100.0%780,238$267,610,916,9965,335$334,451
Dallas, TX100.0%2,289,631$1,065,575,099,3894,964$435,000
Reno, NV100.0%217,595$158,317,847,570806$549,950
Chico, CA100.0%64,193$27,996,090,866459$437,000
Salt Lake City, UT100.0%875,833$559,735,835,811-1,175$525,000
Sacramento, CA100.0%796,425$550,254,981,7449,640$589,250
Fresno, CA100.0%315,470$135,579,285,0892,092$400,000
Salinas, CA100.0%97,044$115,129,440,7291,731$893,000
Oklahoma City, OK99.9%568,516$137,707,132,258850$254,745
Houston, TX99.9%2,060,521$789,099,323,0954,617$345,000
Santa Maria, CA99.8%101,077$151,932,090,692762$792,500
Los Angeles, CA99.8%4,383,279$4,674,166,659,145-40,632$862,250
Springfield, MA99.6%217,190$74,666,072,951-1,315$170,000
San Jose, CA99.5%2,469,402$3,399,612,703,152-48,718$1,400,000
San Luis Obispo, CA98.2%93,489$93,627,164,8162,232$853,000
Boston, MA96.2%2,760,918$1,803,284,484,520-12,493$685,000
Hartford, CT93.0%481,482$160,487,209,659-27$317,250
Tulsa, OK92.7%366,897$80,386,587,237912$251,000
Wichita, KS90.5%202,604$834,03021$235,000
Portland, ME80.2%193,279$97,337,792,5193,585$455,000
Bend, OR80.0%72,968$50,426,376,8802,722$674,813
Little Rock, AR78.5%253,586$55,029,516,570289$225,000
Medford, OR70.7%66,245$32,314,853,630688$450,000
Albuquerque, NM70.0%183,635$1,333,0602,070
Champaign, IL69.3%39,704$9,196,846,068-229$199,450
Honolulu, HI64.3%229,053$183,694,599,4752,127
Minneapolis, MN61.1%827,058$342,424,386,954-2,795$375,000
Corpus Christi, TX59.2%101,251$6,244,354,738667
Tucson, AZ57.0%201,311$64,520,221,5341,004$360,000
Kahului, HI47.6%35,375$42,867,613,9211,828$925,000
New York, NY24.8%1,429,710$987,068,559,669-35,165$710,000
Fayetteville, AR16.4%27,461$8,245,835,702271$340,000
El Paso, TX15.2%43,495$16,569,038683$240,000
Des Moines, IA14.7%40,579$7,783,200,648-18$277,000
Eau Claire, WI10.5%7,110$1,825,927,96928$296,800
Omaha, NE9.9%22,661$5,101,002,91016$290,000
Denver, CO9.2%107,352$55,768,539,473-5,635$590,000
Shreveport, LA5.3%7,533$1,192,796,17018$223,500
San Diego, CA1.5%12,526$9,068,543,4156,804$830,000
McAllen, TX0.8%1,813$204,073,190216$230,000
Boise, ID0.6%1,337$435,624,3291,951$513,450
Kansas City, MO0.6%4,773$901,794,916134$315,000
Prescott Valley, AZ0.3%331$4,525,7741,314$530,000
Memphis, TN0.3%1,523$10,128,502749$290,000
Baton Rouge, LA0.2%568$3,447,259419$265,000
Eugene, OR0.1%151234$455,000
Lafayette, LA0.1%219$1,075,763-137$235,000
Portland, OR0.1%819$114,444,740-2,196$560,000
Nashville, TN0.1%490$158,408,0652,854$457,500
Albany, NY0.1%269$29,037,220-1,101$295,000
Salisbury, MD0.0%110$7,818,1452,862
New Orleans, LA0.0%197$2,724,4761,599$280,000
Fort Collins, CO0.0%52$26,693,577986$560,000
Bangor, ME0.0%15$3,038,325247$238,000
Lincoln, NE0.0%37$687,824-113$283,000
Clarksville, TN0.0%17$1,331,20788$314,900
Lexington, KY0.0%36$146,242-238$285,000
Tampa, FL0.0%103$4,304,0569,841$387,995
Phoenix, AZ0.0%106$28,628,1069,730$468,000
Philadelphia, PA0.0%304$40,636,8991,276$280,000
St. Louis, MO0.0%80$6,887,923984$251,000
Rochester, NY0.0%36$23,645,214543$221,000
Augusta, GA0.0%12$3,145,454107$280,250
Syracuse, NY0.0%13$7,033,14629$200,000
Jackson, MS0.0%12$5,493,99428$262,000
Rochester, MN0.0%5$1,428,204-15$300,000
Burlington, VT0.0%6$3,023,583-21$440,000
Miami, FL0.0%22$23,588,11612,614$475,000
Cape Coral, FL0.0%2$1,942,5727,015$399,999
North Port, FL0.0%4$873,0976,626$475,000
Atlanta, GA0.0%38$19,907,4884,151$390,000
Jacksonville, FL0.0%1$304,4233,818$375,000
Virginia Beach, VA0.0%2$482,0893,155$320,000
Raleigh, NC0.0%19$9,385,6702,711$448,800
Spokane, WA0.0%3$4,723,0842,637$435,000
Charlotte, NC0.0%9$3,781,1582,347$393,715
Knoxville, TN0.0%4$3,934,1412,252$340,000
Wenatchee, WA0.0%1$75,5191,924$551,961
Greensboro, NC0.0%4$2,325,1621,775$275,000
Palm Bay, FL0.0%1$361,6091,686$358,835
Asheville, NC0.0%1$428,4871,579$420,750
Greenville, SC0.0%16$16,282,7941,574$320,000
Richmond, VA0.0%2$1,470,4751,245$365,000
Savannah, GA0.0%3$832,1951,178$315,000
Crestview, FL0.0%8$3,072,0931,152$425,000
Colorado Springs, CO0.0%9$3,228,4301,145
Columbus, OH0.0%8$2,868,9571,112$320,000
Ocala, FL0.0%1$332,3651,089$282,900
Grand Rapids, MI0.0%4$7,251,049983$307,000
Indianapolis, IN0.0%12$2,206,797980$290,000
Chattanooga, TN0.0%5$1,311,864880
Pittsburgh, PA0.0%7$1,281,002858$234,950
Columbia, SC0.0%5$1,548,079797
Allentown, PA0.0%11$4,223,239757$310,000
Harrisburg, PA0.0%7$4,207,255749$255,000
Orlando, FL0.0%4$942,506688$394,995
Cincinnati, OH0.0%17$45,892,916538$265,000
Birmingham, AL0.0%2509$292,000
Huntsville, AL0.0%2$451,482292$340,623
Buffalo, NY0.0%12$3,156,151182$245,000
Lancaster, PA0.0%4$1,329,080165$300,000
Green Bay, WI0.0%5$1,158,174164$268,000
Toledo, OH0.0%1$405,074119$180,050
Mobile, AL0.0%4$934,485112$248,425
Gulfport, MS0.0%2$872,95299$230,000
Dayton, OH0.0%5$1,606,82884$205,000
Youngstown, OH0.0%177$150,000
Hickory, NC0.0%1$460,09165$232,000
Milwaukee, WI0.0%8$317,522-31$300,000
Kalamazoo, MI0.0%4$6,916,411-66$245,000
Madison, WI0.0%3$437,909-129$380,000
Scranton, PA0.0%4$1,201,918-155$176,000
Hilton Head Island, SC0.0%1$185,991-235$460,000
Springfield, IL0.0%1$237,369-318$310,000
Kennewick, WA0.0%2$1,918,455-338$445,121
Peoria, IL0.0%2$347,276-343$144,450
Columbus, GA0.0%3$1,091,402-355
Louisville, KY0.0%6$1,328,835-465$256,000
Lafayette, IN0.0%2$292,112-913$248,000
Cleveland, OH0.0%2$775,038-924$219,000
Chicago, IL0.0%16$3,945,676-4,769$321,500
Detroit, MI0.0%2$1,163,880-7,334$199,500
Seattle, WA0.0%16$7,386,894-18,594$785,000
Washington, DC0.0%109$46,597,091-24,492$530,000


Methodology

The migration portion of this analysis is based on a sample of about two million Redfin.com users who searched for homes across more than 100 metro areas in the second quarter of 2022 and the second quarter of 2021, excluding searches unlikely to precede an actual relocation or home purchase. To be included in this dataset, a Redfin.com user must have viewed at least 10 homes in a particular metro area, and homes in that area must have made up at least 80% of the user’s searches. Net inflow is a measure of how many more Redfin.com users looked to move into an area than leave, while net outflow is a measure of how many more Redfin.com users looked to leave an area than move in. The value of homes at risk is the sum of the Redfin Estimates of the homes’ market values as of August 22, 2022.

We used data from the U.S. Drought Monitor to calculate the share of homes in each metro that experienced severe, extreme or exceptional drought during the second week of August 2022 and the second week of August 2021. To be included in this analysis, a metro must have had at least one home experiencing severe, extreme or exceptional drought during the second week of August, and migration data for the second quarter.

Lily Katz

Lily Katz

As a data journalist, Lily is passionate about helping readers understand complex facets of the housing market. She is particularly interested in the issues of climate change, race and gender equality and housing affordability. Prior to working at Redfin, Lily spent four years as a reporter at Bloomberg News in New York City.

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Sebastian Sandoval-Olascoaga

Sebastian Sandoval-Olascoaga

Sebastian is a Ph.D. candidate in Urban Economics & Policy Analysis at MIT and the Summer ’21 Economist Intern at Redfin. At MIT, he focuses on understanding how the materialization of common or rare intense risks — i.e., shocks — affect the well-being of people, communities, and cities. His applied and theoretical work lies at the intersection of housing, climate change, health, and inequality.

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