Bank of America Institute Finds Pandemic Migration Trends Continue with Faster Population Inflow into Sun Belt Cities like Austin and Tampa

June 5, 2023 at 9:00 AM Eastern

NEW YORK, NY – Bank of America Institute released a new analysis (PDF) today that found net flows of domestic migration (people moving within the United States) continue to follow pandemic trends. BofA internal data, which leads the Census Bureau population data by almost a year, found that as of first quarter 2023, cities that saw a large influx of people during the pandemic are still growing faster than other cities in recent quarters, but housing prices are weakening even in cities with growing populations.

Among the major metropolitan statistical areas (MSAs), Austin saw the largest net inflow of population both during 2020-2021 with +5% and over the past four quarters with +1.5%. Also high on the list are Tampa and Orlando, both with a net increase of +0.8% between first quarter (1Q) 2022 and 1Q 2023. Interestingly, while Phoenix and Las Vegas saw strong increases in population during the first two years of the pandemic, the pace of growth has slowed noticeably in recent quarters, up just 0.3% and 0.2% year-over-year (YoY), respectively, in 1Q 2023.

Alternatively, cities such as San Jose, San Francisco and New York saw the biggest outflow of people during the early years of the pandemic and the rate of decline in 2023 continues to be the highest among major MSAs.

While large population inflows usually increase both home and rental prices, data from Freddie Mac shows that even in cities with growing populations, including Austin, home prices are slowing rapidly.

In contrast, rental prices remain strong in cities with positive inflow of residents. In April 2023, median rent payments for BofA customers in Austin, Orlando and Tampa were up 11%, 14% and 14% YoY, respectively. This compares to the national average of 8% and just 3% for San Francisco.

“Domestic migration continues to be a key theme shaping the housing market,” said Anna Zhou, economist for Bank of America Institute. “While rising interest rates are dampening home-buying demand in the near term, the housing market in cities where Millennial and Baby Boomers are moving could see strength in the longer term as the former enter prime home-buying age and the latter downsize their houses.”

Read the full analysis and methodology here (PDF).

About Bank of America Institute

Bank of America Institute is dedicated to uncovering powerful insights that move business and society forward. Established in 2022, the Institute is a think tank that draws on data and analyses from across the bank and the world to provide timely and original perspectives on the economy, sustainability, and global transformation. The Institute leverages the depth and breadth of the bank’s proprietary data, from approximately 68 million consumer and small business clients, 56 million verified digital users, $4.2T (trillion) in total payments in 2022 and $1.4T in consumer and wealth management deposits. From this robust data set, the Institute provides a unique perspective on the health of the economy. It also elevates thought leadership from throughout the bank that addresses long-term trends and shares these findings with the general public.

Bank of America

Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 68 million consumer and small business clients with approximately 3,900 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 56 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC).

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Phone: 1.646.532.9241

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