Inflation in America is at an all-time high affecting millions of Americans, but these places are worse off than others due to the hordes of people migrating to these cities.
According to a Redfin analysis report, these American cities are most affected by inflation. The sunbelt used to be a place where people would move to get cheap housing, cost of living, and warm weather, but this is changing as what was once affordable is quickly rising into an unaffordable nightmare. Common migration destinations for homebuyers are Phoenix, Tampa, and Atlanta. These American cities have the highest inflation rates in the U.S. According to the Bureau of Labor Statistics (BLS), prices were up 8.5% year over year in March throughout America, the highest rate in 40 years. 2% is what is an acceptable rate according to economic analysts and policymakers.
“Not everyone in the country is experiencing inflation the same way,” said Redfin Deputy Chief Economist Taylor Marr. “It’s having an especially big impact in places like Tampa and Phoenix, which are attracting the newest residents and seeing double-digit increases in prices overall and even bigger increases in housing costs. We need to build more new homes in these Sun Belt hot spots to ease some of the competition for local homebuyers. That’s especially important as everyday costs like paying rent and buying food become more burdensome. In Atlanta, for instance, wages are up about 7% from a year ago but inflation is up 10%, and asking rents are up 22%. That means it’s becoming more difficult to save for a down payment and break into homeownership even before you factor in sky-high home prices and rising mortgage rates.”
Phoenix, Arizona, has the cost of goods and services rising to 10.9% year-over-year increases in the first quarter. Phoenix is the city with the highest inflation and the second-highest moving destination for American homebuyers moving from one metropolitan area to another, second only to Miami, FL. According to migration data provided by Redfin.
Next, there is Atlanta, GA, of the deep south. They have the 10th highest migration rate and the second-highest inflation rate, at 10.6%. In third place for migration and inflation, we have Tampa, FL, with a 9.9% increase in expenses. All of this is according to the data Redfin provided.
However, some cities have had the opposite effect: San Francisco, New York, and Washington, D.C. are among those in the reverse trend. San Francisco has the most American migrants moving away from the metro in the first quarter than any other city. San Francisco has a 5.2% inflation rate, the lowest in the United States and approximately half the inflation rate of Atlanta, Phoenix, and Tampa. New York City has the 2nd lowest inflation rate of 5.4% and the 3rd place of homebuyers leaving. Washington, D.C, is 4th on the list of people moving away and has the third-lowest inflation rate of 6.7%. Los Angeles is in 2nd place when it comes to people leaving the cities and has an inflation rate in the middle of the pack at 7.8%. These statistics are all according to data provided by Redfin.
“A homebuyer would still save a lot of money by moving from San Francisco to Phoenix if they kept the same job and the same salary–but the discount is less than it was two years ago,” Marr said. “Because so many other people are using the same strategy, prices of homes and other goods and services in popular destinations are going way up and inflation is tamer in the places people are leaving. There may come a point where it won’t make financial sense to move from coastal California to Phoenix or Atlanta. That point is likely still many years in the future, as popular migration destinations are building more new homes than other places in the country.”
Many of us are seeing the prices of everything go up. Our country seems headed for a recession in the near future. Inflation is a certainty, but by how much.
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