Great Resignation, meet Great Migration. New data shows one in three home buyers is pulling up stakes and relocating.

Latest analysis from Redfin.com shows a record number of users were trying to migrate in January. Rent hikes and rising interest rates on home loans are forcing people to move.

American homebuyers aren't afraid to pull up stakes and relocate. In fact, migrating households hit record numbers in January, according to one analysis from the online real estate brokerage Redfin.

The company reported that 32.4 percent of Redfin.com users nationwide were planning a move to a completely different metro area. That beat the previous high in migration tendencies of 31.5 percent reached in the first quarter of 2021, according to a Redfin press release. Prior to the COVID-19 pandemic the level of migration was typically no more than 25 percent of Redfin.com's users.

Image from mymove.com

“With mortgage rates going up and rents skyrocketing, moving somewhere more affordable is one of the only ways for many Americans to stay within their housing budget. Even workers who are unable to work from home should feel confident about finding a job in a new location with the tight labor market. - Darryl Fairweather, Redfin Chief Economist.

Source: Redfin.com

“I predict the share of homebuyers looking to move to a different area will continue to rise throughout the year,” said Redfin Chief Economist Daryl Fairweather, in the company's press release. “With mortgage rates going up and rents skyrocketing, moving somewhere more affordable is one of the only ways for many Americans to stay within their housing budget. Even workers who are unable to work from home should feel confident about finding a job in a new location with the tight labor market.”

Redfin based the analysis on a sample of approximately 2 million Redfin.com users. The user home searches covered 111 metro areas nationwide in January. Remote work freedom - an outcome of the pandemic - as well as several years of low mortgage rates have empowered American workers to relocate and find their ideal homes and lifestyles. The same dynamics fueling the migration trend are also a major factor in what is being called "The Great Resignation" - a trend that has seen more than 30 million Americans quit their jobs since early 2021.

Image from manandavanmoving.co.uk

Permanent remote-work policies and the ongoing housing shortage will also likely keep Americans moving. If a buyer becomes frustrated by a lack of inventory in one metro, they may relocate to a place with more affordable homes to choose from. - Redfin migration analysis.

Redfin says Miami is the most popular destination for relocating homebuyers, followed by Phoenix, Tampa, Sacramento and Las Vegas.

“While Sun Belt cities like Miami and Phoenix aren’t likely to lose their luster anytime soon, rising prices may soon render them slightly less popular for relocators,” said Fairweather, the Redfin economist. “Home prices–and the costs of other goods and services–are skyrocketing in a lot of these destinations precisely because they’re so popular with out-of-towners. Some homebuyers who prioritize affordability may start searching in less expensive northern cities.”