Redfin Reports Pandemic Boomtowns Phoenix and Miami Have Among the Highest Inflation Rates in the U.S. - Seite 2

Popular migration destinations have also seen inflation accelerate relatively quickly. For example, Phoenix’s inflation rate has more than quadrupled in the past three years, rising from 3% in the third quarter of 2019 to 13% in the third quarter of 2022. Meanwhile, San Francisco’s inflation rate has roughly doubled, rising from 2.7% to 5.7%.

Housing costs are a bigger inflation driver in popular migration destinations

The increase in housing costs is a bigger contributor to inflation in migration hotspots than in the places homebuyers are leaving.

In Phoenix, for instance, shelter costs rose 19% year over year in August, one of the top inflation drivers. That compares with Phoenix’s overall inflation rate of 13%. Food was also a major contributor to inflation, with prices up 14.1%.

By comparison, San Francisco only saw shelter costs increase 2.1% year over year, one of the smallest inflation drivers. Fuel, transportation and food were much bigger contributors to the region’s overall inflation rate, which was 5.7%. Redfin plans to update these figures through October on Thursday, Nov. 10, when the BLS is scheduled to release its latest data.

Variance in inflation rates across the country is at a record high

The discrepancy in inflation rates across the U.S. is at the most extreme level on record because so many places surged in popularity during the pandemic while so many others plummeted in popularity.

The typical variability in the inflation rate among the metros Redfin analyzed in the third quarter was 1.8 percentage points, up from 1 percentage point a year earlier and a pre-2020 average of 0.8 percentage points.

Phoenix’s 13% third-quarter inflation rate, the highest among the metros Redfin analyzed, was more than double San Francisco’s 5.7% rate, which was the lowest among the metros Redfin analyzed. That’s a gap of 7.3 percentage points. By comparison, there was only a 2.1-percentage-point gap between the highest and lowest inflation metros in the third quarter of 2019; Seattle had an inflation rate of 3.2%, while Washington, D.C. had an inflation rate of 1.1%.

To view the full report, including charts and methodology, please visit:
https://www.redfin.com/news/migration-inflation-q3-2022

About Redfin

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