Bay Area's Exodus Ebb: Homebuyers Return As Offices Call Them Back, Post-Pandemic Normalcy Returns

The mass exodus of homebuyers the San Francisco Bay Area experienced during the COVID-19 pandemic is slowing as life returns to normal and employers require people to get back in the office.

The Bay Area had a net outflow of 26,000 homebuyers in the fourth quarter, down 13% year over year and by a factor of two from September 2021 when people moving away from the area peaked, according to a Redfin report.

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"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 was behind Los Angeles, which led the list of metros homebuyers wanted to leave in the fourth quarter. It's the first quarter in more than two years that the Bay Area has dropped out of the No. 1 spot.

During the pandemic, many homebuyers — especially remote tech workers — relocated to more affordable areas like Sacramento and Austin, Texas, where they could get more bang for their buck. But with major tech companies like Apple Inc., Google and Meta Platforms Inc. requiring workers to be in the office, it's not happening as much anymore. Homebuyers moving from the Bay Area to both Sacramento and Austin dropped about 25% year over year in the fourth quarter.

Home prices also have started to drop slightly, which may help some people afford to purchase a house in the area. The median sale price in San Francisco is still nearly $1.3 million, but that's close to its lowest level since early 2019.

The data is based on searches of about 2 million Redfin.com users who viewed for-sale homes across more than 100 metro areas from October to December. The Bay Area is defined as the San Jose-San Francisco-Oakland combined statistical area.

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