People leaving pandemic hotspots amid rising costs and lifestyle changes

Many popular cities that saw an influx of residents during the COVID-19 pandemic are now witnessing a reverse trend, as people start moving out. According to home services company Thumbtack, cities such as Austin, TX, West Palm Beach, FL, and San Diego have been seeing a significant number of residents leaving. The analysis was based on long-distance moving requests from April to September 2024.

These cities became attractive during the pandemic due to lower prices and open spaces but are now facing various challenges. "Interestingly, residents are waving goodbye to many of the COVID hot spots—looking at you Austin, Florida, Vegas, and Colorado," says home expert Aldo Ceja in the report. He suggests reasons like returning to office work or seeking new experiences might be driving this shift.

Realtor.com® senior economic data analyst Hannah Jones notes that these were pandemic-era favorites where people could cash in on home equity and move elsewhere for better value. For instance, Austin's home prices have risen so much that renting has become cheaper than buying.

The exodus is not only due to rising costs but also other factors like extreme weather and increased crime rates in some areas. For example, West Palm Beach faces challenges from hurricanes and insurance rate hikes affecting retirees with fixed incomes.

In San Diego and San Francisco, high living costs combined with concerns about crime contribute to the out-migration. "San Diego is dense as a city and crowded," says real estate agent Cara Ameer. Similarly, Sam Fitz-Simon points out issues in San Francisco related to safety and quality of life.

Miami also shares similar issues with rising housing costs and property insurance spikes leading people to leave. Las Vegas faces challenges with extreme heat impacting utility costs while offering mostly temporary jobs.

Houston's affordability is overshadowed by high utility bills due to dry conditions year-round. Denver sees former coastal transplants cashing out for more affordable regions despite its appealing lifestyle offerings.

Seattle remains expensive with added concerns over crime pushing residents away. Finally, Colorado Springs faces political shifts and health concerns related to its altitude affecting its population retention.

Below is the list of top 10 cities people are leaving:

1. Austin, TX

2. West Palm Beach, FL

3. San Diego, CA

4. San Francisco Bay Area

5. Miami, FL

6. Las Vegas, NV

7. Houston, TX

8. Denver, CO

9. Seattle WA,

10: Colorado Springs CO