Inflation is currently at a four-decade high. Meanwhile, we have seen a consistent pattern of Americans permanently relocating to various Sun Belt metropolitan areas such as Miami, Tampa, Atlanta, & Phoenix. As it turns out with inflation, home prices are a “chicken-or-egg” event. In other words, they’re both a result of inflation and a cause of it. We discuss this phenomenon in more detail below.
In-bound migration = higher inflation
Phoenix, Atlanta, Tampa, & Miami all experienced all experienced double-digit inflation in the second quarter of 2022. Meanwhile, all four were among the most popular migration destinations for Americans. Below are some of the findings of this analysis. To view the full report, click here.
- #1. Phoenix, AZ: Prices of goods and services rose by 11.3% year-over-year in the second quarter of 2022. Meanwhile, Phoenix was the third most popular destination for relocating Americans.
- #2. Atlanta, GA: Prices of goods and services rose by 10.9% year-over-year in the second quarter of 2022. With this said, Atlanta was the 12th-most popular destination for relocating Americans.
- #3. Tampa, FL: Prices of goods and services rose by 10.6% year-over-year in the second quarter of 2022. As for it’s relocation popularity, it ranked 2nd in the country.
- #4. Miami, FL: Prices of goods and services rose by 10% year-over-year in the second quarter of 2022. The Magic City has also consistently been the top destination for relocating Americans and still holds the top spot.
Out-bound migration = lower inflation
Conversely, this analysis also found that the cities that had the most people departing tended to have the lowest rates of inflation:
- #1. San Francisco, CA: The top location that Americans are fleeing from. Q2 ’22 inflation = 5.6%.
- #2. Los Angeles, CA: The 2nd ranked metro where Americans are departing. Q2 ’22 inflation = 8%.
- #3. New York, NY: The 3rd ranked metro with fleeing residents. Q2 ’22 inflation = 5.9%.
- #4. Washington, D.C.: The 4th ranked metro where residents are hitting the exits. Q2 ’22 inflation = 7.1%.
- #5. Seattle, WA: The 5th ranked metro where residents are packing their bags. Q2 ’22 inflation = 8.9%.
Although these data are not entirely surprising, they do underscore the relationship between housing and inflation. They lead to the following question: Could rising home prices and inflation in hot real estate markets one day even out the financial benefit of living in a city such as Miami compared to New York? Of course, we can think of thousands of reasons why you would want to live in South Florida as opposed to New York. (Even if it became more expensive eventually.)
Are you thinking about moving to South Florida? We can help. Contact Natasha at Live South Florida Realty, Inc. In addition, get a jump on your home search by downloading the free Florida Home Search App today!