In Q4, the Bay Area experienced a net outflow of 26,000 homebuyers, down 13% year-over-year, according to a recent report from Redfin. The report revealed the number of homebuyers planning to leave the Bay Area has decreased by over 50% since September 2021, when the pandemic-related surge in remote work peaked.
“If San Francisco could talk, it would quote Mark Twain: ‘The reports of my death are greatly exaggerated,’” said Ali Mafi, a San Francisco Redfin Premier agent. “The news says it’s a ghost town, but restaurant reservations at foodie hotspots are impossible to get, and Dolores Park is packed on the weekend with residents and tourists.” With the big boom in AI and many tech companies requiring in-person work, San Francisco is as alive as ever. Homes are getting multiple offers, and I see the market getting more competitive as the year goes on.”
The Bay Area has dropped to second on the list of places homebuyers are leaving.
On the list of metro areas that homebuyers want to leave in Q4, the Bay Area came in second—only to Los Angeles. That is the first quarter that the Bay Area has not been ranked first in more than two years.
Part of the reason for the decreasing net outflow from the Bay Area is locals staying around. During the peak of the pandemic, many Americans moved away from the coast to live in more cost-effective interior places like Sacramento and Austin, Texas, particularly for remote computer workers.
Now, this is less common, mostly due to requirements from big tech companies like Apple, Google, and Meta demanding employees to return and work from the office. In Q4, the number of Bay Area residents purchasing homes in Sacramento and Austin decreased by roughly 25% compared to the same period last year.
Furthermore, there has been a slight decrease in home prices, which may help some individuals afford to purchase in the landmark city. Although San Francisco’s median sale price is still close to $1.3 million, it is at its lowest point since early 2019.
“With the big boom in AI and many tech companies requiring in-person work, San Francisco is as alive as ever. Homes are getting multiple offers, and I see the market getting more competitive as the year goes on,” said Mafi.
To read the full report, including more data, charts, and methodology, click here.
