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35 RECORD NUMBER OF PEOPLE CONSIDERING MIGRATING BETWEEN CITIES According to Redfin data from 2 million users, the share of homeseekers looking to relocate took a big jump in July amid an environment of rising rates as buyers look to more affordable areas where deals can still be had. Before the pandemic, roughly 26% of Redfins users searched for properties outside of their listed metropolitan area—in July, that number hit 33.7%, a new record. e proliferation of remote work has given many Americans a newfound freedom that allows them to prioritize not only affordability but things like the weather as well. According to Redfin, sunny Miami was once again the most popular migration destination in July, the seventh consecutive month in this position. is was followed by Sacramento and San Diego, California, Tampa, Florida, and Las Vegas, Nevada. "Movement into a few other perennially popular destinations has started to slow, too, even as the overall share of relocators hit a record high," the report said. "Sacramento was the second-most popular destination in July, but there's less movement into the California capital than a year earlier." "And after many months as one of the three most popular destinations, Phoenix fell to number 6 in July, with a sizable decline in out-of-town homebuyers looking to move there. at's partly because Phoenix home prices rose so much during the pandemic, increasing 20% year over year to $485,000 in June, well above the national median of $428,000." "We've always had a lot of people from the Bay Area and Los Angeles move to San Diego for a better work-life balance and a beachside lifestyle, and it has picked up since remote work became commonplace," San Diego Redfin Agent Jodie Lee said. "is year, I've also seen quite a few remote workers move in from places like Seattle and North Carolina because they like the sunny weather and outdoor activities in this area. San Diego also has a big military presence, and more service members are relocating here now that the cooling market means they have a better chance of getting an offer with a VA loan accepted." So where are people migrating from? Data shows that homebuyers are leaving expensive cities on either coast in droves with San Francisco being the most popular outflow center. is was followed by Los Angeles, New York City, Washington D.C., and Boston. Journal arrangements has resulted in a reshuffling of living preferences. Some buyers are looking to be a commute away from a high-cost metro, while other buyers are opting for more space in lower-priced areas. On both fronts, buyers looking in the hottest ZIP codes tend to get more space for their money. Homes in the hottest ZIPs are larger, on average, than in their surrounding metro, resulting in a higher median listing price. Homebuyers shopping in these ZIP codes find larger homes than they would find around the country, with a median square footage of 1,946, which was about 60 square feet larger than the typical home for sale around the country in June. Controlling for home size, the outright or relative affordability of these ZIPs really shines through. Price per square foot was lower than either the surrounding metro or the U.S. average in all of the hottest ZIPs. e price per square foot for homes in the hottest zip codes was 8.7% lower than their surrounding metros in June. Demand in all of the hottest ZIP codes outpaced U.S. demand. e number of visitors per property on Realtor.com in the top ZIP codes was 3.6 times higher than for the typical U.S. property, on average. Viewers per property in the hottest ZIP codes were 1.6 times as high as their surrounding metro areas. Aspiring millennial homeowners are financially prepared for success in the hottest ZIP codes Now aged between 25 and 44 years- old, millennials are a key cohort of aspiring homeowners, whether first-time or repeat buyers. is generation is ready and willing to pursue homebuying opportunities in the hottest ZIP codes, where they have the advantage of strong financial qualifications. Millennials are entering the top 10 with incomes that are higher than the national averages among those aged 25-34 ($83,782 vs. $70,510 and aged 34-45 ($100,966 vs. $89,365). On average, buyers in the hottest ZIP codes are well-qualified with higher credit scores (742 vs. 728) and larger down payments (15.0% vs. 14.2%) compared to the typical U.S. home shopper. Millennials' strong financial grip is paying off when it comes to achieving homeownership in the top 10. In fact, some 57% of millennials have successfully become homeowners in these ZIPs on average, than in the U.S. overall at 51.3%.

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