Domestic Migration from Major Metropolitan Areas Slowing

Freddie Mac’s data for two Southern California metro areas are numbers 1 and 2 in their respective categories of places people are moving to and moving from. With both, they follow the general cooling trend to relocate away from higher priced areas to more affordable areas of the country. Riverside-San Bernadino-Ontario area saw a net gain of 7,300 new residents for the 12 months ending March 2023. This was almost double the number 2 spot for net migration but represented a 27% decline for the prior 12 months (4/2021-3/2022). 

Los Angeles-Long Beach-Anaheim waved good-bye to a net 21,200 people during the 12-month period ending March 2023. This is the second largest loss behind NYC-Newark-Jersey City by 2,900, and more than twice as many as the third place DC metro area. Like the decline in the popular destinations, LA-Long Bch-Ana saw a 26% decline in their loss. These significant declines mirror the general decline in homes for sale and the staying in place trend because of so many homeowners with exceptionally low mortgage rates. See the chart below from Freddie Mac showing the nationwide slowdown in housing transactions.