Sun Belt Cities Lure People With Warm Weather, Abundant Jobs And Cheaper Housing

Cities in the nation’s Sun Belt are the most popular places for people to relocate.

High mortgage rates, increased home prices and economic uncertainty are causing many people to move to more affordable areas, and these days, they’re seeking warmer weather.

Sacramento, California and Las Vegas, Nevada are the most popular destinations. Each had net inflows of around 5,500, down from about 6,500 a year ago, according to Redfin. Phoenix is the fifth most popular destination with a net inflow of about 4,000 in the fourth quarter, down from more than 8,000.

Net inflow is the number of people looking to move into a metro less the number of people looking to leave.

While many people who are relocating are seeking a more tax-friendly state or lower cost of living, warmer weather is the big attraction, said Ari Rastegar, founder of Austin, Texas-based real estate investment firm Rastegar Property Co.

“Climate is a huge driver of real estate,” Rastegar said. “In the ’50s through the ’80s, people went to San Diego and Los Angeles and didn’t leave. Florida was close to New York City and good for retirees — there’s no state income tax.”

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After Sacramento and Las Vegas, Miami was the most popular place for people to move in the fourth quarter, followed by Tampa and Phoenix, according to Redfin.

While many people are seeking warmer climes, another big driver of relocations is jobs. Large metro areas in the Sun Belt saw an average employment growth rate of 3.5% in 2022, according to an Economic Innovation Group analysis of Bureau of Labor Statistics data.

Seven of the top 10 states for job growth were in the Sun Belt, according to the Economic Innovation Group. Dallas saw the highest growth rate at 5.9%, followed by Jacksonville, Florida at 5.7%; Houston at 5.6%; Raleigh, North Carolina at 5.2%; Portland, Oregon at 5%; and Tampa at 4.8%.

People who relocate are enjoying reasonable housing costs and a lower cost of living, Rastegar said. 

“People feel like they’re getting a good house, a good school system and safety,” he said. “They’re getting more bang for the buck, and it’s becoming pretty attractive.”

Where are people relocating from? They’re leaving expensive coastal job centers like San Francisco, Los Angeles, New York, Washington D.C., and Chicago. 

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