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Residential Construction Driving National Migration Patterns

Nashville has cracked the Top 10 Migration Destinations, according to a new Migration Report published by online real estate brokerage Redfin.com [1]. Last quarter was the first time Nashville has joined the Top 10 Migration Destinations, riding a wave of both increased migration and increased residential construction in cities such as San Diego, California (number one on the list); Las Vegas, Nevada (number three); and Dallas, Texas (number seven). Nashville slid onto the list at number eight.

For the report [2], Redfin surveyed more than one million Redfin users searching for homes from July through September of 2017. Those users’ searches spanned 75 different metro areas, with 22 percent of Redfin’s users searching for houses outside of their home areas. That number has steadily been on the rise, jumping from 20 percent in the first quarter to 21 percent in the second quarter.

Almost across the board, Redfin’s survey saw correlation between cities with a high net inflow of homebuyers and cities with abundant residential construction. Of the top 10 cities with the highest inflow, seven of them also had more permitted units than the national average. The top 10 metros by net inflow are, in order: San Diego, California; Sacramento, California; Las Vegas, Nevada; Phoenix, Arizona; Atlanta, Georgia; Boston, Massachusetts; Dallas, Texas; Nashville, Tennessee; Tampa, Florida; and Miami, Florida.

Lower-than-average rates of new residential construction within a metro area also tends to result in a net outflow of homebuyers for that market.

Nashville is a perfect example of this trend, says Redfin Nashville agent Phillip Bernier. He says he’s recently helped buyers looking to relocate to Nashville from cities including Chicago, San Diego, and San Francisco. In fact, nearly a third of all Redfin users searching for Nashville homes are searching from another metro area, with 25.6 percent searching from New York. “The city is growing quickly,” said Bernier. “We have a running joke that the new state bird is the crane. If you look at the Nashville skyline, you can see 10 to 12 cranes at any given time.”

The full Redfin report is available here [2], along with an interactive data map.