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Redfin Finds Homebuyers Are Moving Farther from City Centers as Home Prices Rise

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Austin Homebuyers Moved 1.6 Miles Farther From the City Center in 2015 Than in 2011

SEATTLE — March 23, 2016 — Despite a resurgence in America’s cities and growing interest in downtown living, a new Redfin analysis finds homebuyers have been moving farther away from the urban core in most metro areas as home prices have risen in recent years. Redfin (www.redfin.com), the next-generation real estate brokerage, found the typical home sold in 2015 was about 4 percent farther from a city center than in 2011.

In Austin and San Francisco, where home prices have risen drastically, the typical home sold was 12.3 and 10.2 percent farther from the respective urban core.

Rising home prices and the scarcity of homes for sale in urban centers have played a role in driving homebuyers to the suburbs. Across the 30 metros Redfin examined, prices grew almost 50 percent faster in the urban cores than in the metro areas. In 2015 the median price per square foot across metro areas was $148, but was nearly double in urban centers at $284.

“Chronically low inventory, surging rental rates and high home prices have shifted the demographic makeup of the urban core in many American cities,” said Redfin chief economist Nela Richardson.

“Cities used to be enclaves of cultural and economic diversity, but suburbs are increasingly filling this role, as middle-class buyers are pushed farther out of the urban core in search of homeownership or affordable rentals. The new housing policy issue for local governments is how to connect far-flung residents to the economic opportunity concentrated in the heart of our nation’s cities.”

To read the full report, complete with data, interactive charts and methodology, click or paste the following link: https://www.redfin.com/blog/2016/03/homebuyers-are-bucking-the-urban-revival-as-burbs-beckon.html

About Redfin
Redfin (www.redfin.com) is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the customer’s favor. Founded by software engineers, Redfin has the country’s #1 brokerage website and offers a host of online tools to consumers, including the industry’s most accurate home-value estimate, the Redfin Estimate. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commission. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $31 billion in home sales, and saved customers more than $335 million in fees, and counting. For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center.