{"id":75394,"date":"2022-11-10T05:00:42","date_gmt":"2022-11-10T13:00:42","guid":{"rendered":"https:\/\/www.redfin.com\/news\/?p=75394"},"modified":"2022-11-10T09:55:22","modified_gmt":"2022-11-10T17:55:22","slug":"migration-inflation-q3-2022","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/migration-inflation-q3-2022\/","title":{"rendered":"Pandemic Boomtowns Phoenix and Miami Have Among the Highest Inflation Rates in the U.S."},"content":{"rendered":"<h2><i><span style=\"font-weight: 400;\">The inflation rate in Phoenix, which attracted scores of out-of-town homebuyers during the pandemic, is more than double the inflation rate in the Bay Area, which saw an exodus of residents.<\/span><\/i><\/h2>\n<p><span style=\"font-weight: 400;\">The four U.S. metropolitan areas with the highest inflation rates in the third quarter are migration hotspots. <\/span><a href=\"https:\/\/www.redfin.com\/city\/14240\/AZ\/Phoenix\"><span style=\"font-weight: 400;\">Phoenix<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"http:\/\/atlanta\"><span style=\"font-weight: 400;\">Atlanta<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/www.redfin.com\/city\/18142\/FL\/Tampa\"><span style=\"font-weight: 400;\">Tampa, FL<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/www.redfin.com\/city\/11458\/FL\/Miami\"><span style=\"font-weight: 400;\">Miami<\/span><\/a><span style=\"font-weight: 400;\"> experienced double-digit inflation and all ranked near the top of Redfin\u2019s list of most popular destinations for relocating homebuyers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In <\/span><a href=\"https:\/\/www.redfin.com\/city\/14240\/AZ\/Phoenix\"><span style=\"font-weight: 400;\">Phoenix<\/span><\/a><span style=\"font-weight: 400;\">, the price of goods and services rose 13% year over year on average, the highest inflation rate among the metros for which the U.S. Bureau of Labor Statistics (BLS) provides inflation data. <\/span><a href=\"http:\/\/phoenix\"><span style=\"font-weight: 400;\">Phoenix<\/span><\/a><span style=\"font-weight: 400;\"> was the <\/span><a href=\"https:\/\/www.redfin.com\/news\/housing-migration-trends-q3-2022\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">sixth-most popular<\/span><\/a><span style=\"font-weight: 400;\"> destination for Redfin.com users looking to move from one metro to another in the third quarter.<\/span><\/p>\n<p><a href=\"http:\/\/atlanta\"><span style=\"font-weight: 400;\">Atlanta<\/span><\/a><span style=\"font-weight: 400;\">, the 15th most popular destination, had the second highest inflation rate, at 11.7%, and <\/span><a href=\"https:\/\/www.redfin.com\/city\/18142\/FL\/Tampa\"><span style=\"font-weight: 400;\">Tampa<\/span><\/a><span style=\"font-weight: 400;\"> (10.9%) clocked in at number three for inflation and number five for migration. <\/span><a href=\"https:\/\/www.redfin.com\/city\/11458\/FL\/Miami\"><span style=\"font-weight: 400;\">Miami<\/span><\/a><span style=\"font-weight: 400;\"> had the fourth highest inflation rate (10.7%) and was the second most popular migration destination. Nationwide, the inflation rate was <\/span><a href=\"https:\/\/fred.stlouisfed.org\/graph\/?g=VyIi\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">8.3%<\/span><\/a><span style=\"font-weight: 400;\"> in the third quarter.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-75396\" src=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2022\/11\/FINAL-CHART-Quarterly-Inflation-and-Migration.png\" alt=\"\" width=\"800\" height=\"600\" srcset=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2022\/11\/FINAL-CHART-Quarterly-Inflation-and-Migration.png 800w, https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2022\/11\/FINAL-CHART-Quarterly-Inflation-and-Migration-300x225.png 300w, https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2022\/11\/FINAL-CHART-Quarterly-Inflation-and-Migration-768x576.png 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/span><\/p>\n<p><span style=\"font-weight: 400;\">The places homebuyers are leaving have the lowest inflation rates. Prices in <\/span><a href=\"https:\/\/www.redfin.com\/city\/17151\/CA\/San-Francisco\"><span style=\"font-weight: 400;\">San Francisco<\/span><\/a><span style=\"font-weight: 400;\"> rose 5.7% in the third quarter, the lowest inflation rate among the metros Redfin analyzed and less than half the rate of <\/span><a href=\"http:\/\/phoenix\"><span style=\"font-weight: 400;\">Phoenix<\/span><\/a><span style=\"font-weight: 400;\">. The Bay Area was number one on the list of places Redfin.com users looked to leave in the third quarter. <\/span><a href=\"https:\/\/www.redfin.com\/city\/30749\/NY\/New-York\"><span style=\"font-weight: 400;\">New York<\/span><\/a><span style=\"font-weight: 400;\"> had the second-lowest inflation rate (6.4%) and was number three on the list of metros homebuyers looked to leave.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Inflation and migration have become increasingly linked. Remote work allowed scores of Americans to move to the Sun Belt during the pandemic in search of affordability and warm weather, which drove up housing prices, a key contributor to inflation. That\u2019s why migration hotspots now have the highest inflation rates\u2014a trend that was much less acute before the pandemic. In 2019, for example, Los Angeles had the second highest inflation rate, but it was losing residents.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe pandemic triggered a great rebalancing of affordability,\u201d said Redfin Deputy Chief Economist <\/span><a href=\"https:\/\/www.redfin.com\/news\/author\/taylormarr\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Taylor Marr<\/span><\/a><span style=\"font-weight: 400;\">. \u201cAmericans left pricey coastal job centers and moved to more affordable places in the Sun Belt, but now those more affordable places are seeing affordability erode faster than anywhere else in the country. Some of these areas may lose their titles as top migration destinations in 2023 as a result.&#8221;<\/span><i><\/i><\/p>\n<p><span style=\"font-weight: 400;\">Popular migration destinations have also seen inflation <\/span><i><span style=\"font-weight: 400;\">accelerate <\/span><\/i><span style=\"font-weight: 400;\">relatively quickly. For example, <\/span><a href=\"https:\/\/www.redfin.com\/city\/14240\/AZ\/Phoenix\"><span style=\"font-weight: 400;\">Phoenix<\/span><\/a><span style=\"font-weight: 400;\">\u2019s inflation rate has more than quadrupled in the past three years, rising from 3% in the third quarter of 2019 to 13% in the third quarter of 2022. Meanwhile, <\/span><a href=\"https:\/\/www.redfin.com\/city\/17151\/CA\/San-Francisco\"><span style=\"font-weight: 400;\">San Francisco<\/span><\/a><span style=\"font-weight: 400;\">\u2019s inflation rate has roughly doubled, rising from 2.7% to 5.7%.<\/span><\/p>\n<h3>Housing costs are a bigger inflation driver in popular migration destinations<\/h3>\n<p><span style=\"font-weight: 400;\">The increase in housing costs is a bigger contributor to inflation in migration hotspots than in the places homebuyers are leaving.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In <\/span><a href=\"https:\/\/www.redfin.com\/city\/14240\/AZ\/Phoenix\"><span style=\"font-weight: 400;\">Phoenix<\/span><\/a><span style=\"font-weight: 400;\">, for instance, shelter costs rose <\/span><a href=\"https:\/\/www.bls.gov\/regions\/west\/news-release\/consumerpriceindex_phoenix.htm\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">18.2%<\/span><\/a><span style=\"font-weight: 400;\"> year over year in October, one of the top inflation drivers. That compares with <\/span><a href=\"https:\/\/www.redfin.com\/city\/14240\/AZ\/Phoenix\"><span style=\"font-weight: 400;\">Phoenix<\/span><\/a><span style=\"font-weight: 400;\">\u2019s overall inflation rate of 12.1%. Gas and food were also major contributors to inflation, with prices up 40.8% and 12.6%, respectively.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By comparison, <\/span><a href=\"https:\/\/www.redfin.com\/city\/17151\/CA\/San-Francisco\"><span style=\"font-weight: 400;\">San Francisco<\/span><\/a><span style=\"font-weight: 400;\"> only saw shelter costs increase <\/span><a href=\"https:\/\/www.bls.gov\/regions\/west\/news-release\/consumerpriceindex_sanfrancisco.htm\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">2.6%<\/span><\/a><span style=\"font-weight: 400;\"> year over year, one of the smallest inflation drivers. Fuel, transportation and food were much bigger contributors to the region\u2019s overall inflation rate, which was 6%.<\/span><\/p>\n<h3>Variance in inflation rates across the country is at a record high<\/h3>\n<p><span style=\"font-weight: 400;\">The discrepancy in inflation rates across the U.S. is at the most extreme level on record because so many places surged in popularity during the pandemic while so many others plummeted in popularity.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The typical variability in the inflation rate among the metros Redfin analyzed in the third quarter was 1.8 percentage points, up from 1 percentage point a year earlier and a pre-2020 average of 0.8 percentage points.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><img decoding=\"async\" class=\"alignnone size-full wp-image-75399\" src=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2022\/11\/Historical-Inflation-Qrtly-1.png\" alt=\"\" width=\"800\" height=\"600\" srcset=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2022\/11\/Historical-Inflation-Qrtly-1.png 800w, https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2022\/11\/Historical-Inflation-Qrtly-1-300x225.png 300w, https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2022\/11\/Historical-Inflation-Qrtly-1-768x576.png 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/span><\/p>\n<p><a href=\"http:\/\/phoenix\"><span style=\"font-weight: 400;\">Phoenix<\/span><\/a><span style=\"font-weight: 400;\">\u2019s 13% third-quarter inflation rate, the highest among the metros Redfin analyzed, was more than double <\/span><a href=\"https:\/\/www.redfin.com\/city\/17151\/CA\/San-Francisco\"><span style=\"font-weight: 400;\">San Francisco<\/span><\/a><span style=\"font-weight: 400;\">\u2019s 5.7% rate, which was the lowest among the metros Redfin analyzed. That\u2019s a gap of 7.3 percentage points. By comparison, there was only a 2.1-percentage-point gap between the highest and lowest inflation metros in the third quarter of 2019; <\/span><a href=\"https:\/\/www.redfin.com\/city\/16163\/WA\/Seattle\"><span style=\"font-weight: 400;\">Seattle<\/span><\/a><span style=\"font-weight: 400;\"> had an inflation rate of 3.2%, while <\/span><a href=\"https:\/\/www.redfin.com\/city\/12839\/DC\/Washington-DC\"><span style=\"font-weight: 400;\">Washington, D.C.<\/span><\/a><span style=\"font-weight: 400;\"> had an inflation rate of 1.1%.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Metro-Level Summary of Inflation and Migration: Q3 2022<\/span><\/h3>\n<p><i><span style=\"font-weight: 400;\">The table below includes metros for which BLS inflation data and Redfin migration data were available, and is ranked by highest to lowest inflation rate.<\/span><\/i><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>U.S. Metro Area<\/b><\/td>\n<td><b>Consumer Price Index, Annual Change (%)<\/b><\/td>\n<td><b>Net Flow of Redfin.com Users<\/b><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/www.redfin.com\/city\/14240\/AZ\/Phoenix\"><span style=\"font-weight: 400;\">Phoenix, AZ<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">13.0%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5,227<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/www.redfin.com\/city\/30756\/GA\/Atlanta\"><span style=\"font-weight: 400;\">Atlanta, GA<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">11.7%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2,982<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/www.redfin.com\/city\/18142\/FL\/Tampa\"><span style=\"font-weight: 400;\">Tampa, FL<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">10.9%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">6,669<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/www.redfin.com\/city\/11458\/FL\/Miami\"><span style=\"font-weight: 400;\">Miami, FL<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">10.7%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7,994<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/www.redfin.com\/city\/8903\/TX\/Houston\"><span style=\"font-weight: 400;\">Houston, TX<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">9.5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">3,074<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/www.redfin.com\/city\/30794\/TX\/Dallas\"><span style=\"font-weight: 400;\">Dallas, TX<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">9.3%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">4,114<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/www.redfin.com\/city\/16163\/WA\/Seattle\"><span style=\"font-weight: 400;\">Seattle, WA<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">9.0%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">-3,528<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/www.redfin.com\/city\/29470\/IL\/Chicago\"><span style=\"font-weight: 400;\">Chicago, IL<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">8.8%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">-5,681<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/www.redfin.com\/city\/5665\/MI\/Detroit\"><span style=\"font-weight: 400;\">Detroit, MI<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">8.6%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">-4,554<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/www.redfin.com\/city\/15502\/PA\/Philadelphia\"><span style=\"font-weight: 400;\">Philadelphia, PA<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">8.1%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">-901<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/www.redfin.com\/city\/5155\/CO\/Denver\"><span style=\"font-weight: 400;\">Denver, CO<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">8.0%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">-3,686<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/www.redfin.com\/city\/10943\/MN\/Minneapolis\"><span style=\"font-weight: 400;\">Minneapolis, MN<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">7.8%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">-2,159<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/www.redfin.com\/city\/16904\/CA\/San-Diego\"><span style=\"font-weight: 400;\">San Diego, CA<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">7.8%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">6,837<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/www.redfin.com\/city\/11203\/CA\/Los-Angeles\"><span style=\"font-weight: 400;\">Los Angeles, CA<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">7.7%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">-33,627<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/www.redfin.com\/city\/781\/AK\/Anchorage\"><span style=\"font-weight: 400;\">Anchorage, AK<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">7.6%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">53<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/www.redfin.com\/city\/1826\/MA\/Boston\"><span style=\"font-weight: 400;\">Boston, MA<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">7.6%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">-9,329<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/www.redfin.com\/city\/16661\/MO\/St-Louis\"><span style=\"font-weight: 400;\">St. Louis, MO<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">7.5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">451<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/www.redfin.com\/city\/12839\/DC\/Washington-DC\"><span style=\"font-weight: 400;\">Washington, D.C.<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">7.0%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">-18,873<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/www.redfin.com\/city\/34945\/HI\/Honolulu\"><span style=\"font-weight: 400;\">Honolulu, HI<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">6.7%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">1,283<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/www.redfin.com\/city\/30749\/NY\/New-York\"><span style=\"font-weight: 400;\">New York, NY<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">6.4%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">-23,551<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/www.redfin.com\/city\/17151\/CA\/San-Francisco\"><span style=\"font-weight: 400;\">San Francisco<\/span><\/a><span style=\"font-weight: 400;\">\/<\/span><a href=\"https:\/\/www.redfin.com\/city\/17420\/CA\/San-Jose\"><span style=\"font-weight: 400;\">San Jose, CA<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">5.7%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">-37,788<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3>Methodology<\/h3>\n<p><span style=\"font-weight: 400;\">This report is based on a Redfin analysis of the correlation between inflation (the rising prices of goods and services) and migration in metro areas where inflation and migration data is available. Redfin migration data is aggregated to the combined statistical area (CSA). This analysis measures the popularity of migration destinations by net inflow, or how many more Redfin.com users are looking to move into a metro area than move out. Inflation rates are <\/span><a href=\"https:\/\/www.bls.gov\/charts\/consumer-price-index\/consumer-price-index-by-metro-area.htm\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">measured<\/span><\/a><span style=\"font-weight: 400;\"> by the Bureau of Labor Statistics at the core-based statistical area (CBSA) by the<\/span><a href=\"https:\/\/www.bls.gov\/cpi\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\"> Consumer Price Index<\/span><\/a><span style=\"font-weight: 400;\">, the average change over time in prices of goods and services such as fuel, energy and food. We calculated the quarterly average of the monthly inflation rates published by the BLS. The metro-level inflation rates cover one, two or three months during the quarter depending on the CBSA, as the BLS has different data release schedules for different CBSAs.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The inflation rate in Phoenix, which attracted scores of out-of-town homebuyers during the pandemic, is more than double the inflation rate in the Bay Area, which saw an exodus of residents. The four U.S. metropolitan areas with the highest inflation rates in the third quarter are migration hotspots. Phoenix, Atlanta, Tampa, FL and Miami experienced [&hellip;]<\/p>\n","protected":false},"author":13346,"featured_media":75398,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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