Prices in Atlanta, considered the 10th most popular migration destination, increased by 8.9%
Drone photo of downtown Atlanta, Georgia. (iStock / iStock)
Inflation is surging around the nation, hitting its highest mark in nearly 40 years. However, the most popular migration destinations around the country have been facing the worst surge in prices for goods and services, according to a new report.
Technology-powered real estate brokerage Redfin reported that popular destinations such as Atlanta, Phoenix and Tampa had double the inflation rates of high-priced San Francisco and New York, two of the top cities that people are moving away from, during the last three months of 2021.
During that time, the prices of goods and services in Atlanta, considered the 10th most popular migration destination, increased by 8.9% compared to the same time a year ago, according to Redfin.
Meanwhile, Phoenix “came in number two for both inflation and migration in the fourth quarter” as prices increased 8.4%, according to the report.
Prices in Tampa—the fifth most popular destination—rose 8% compared to a year ago, which was the third-highest inflation rate, according to the report.
Competitively, San Francisco saw the greatest influx of people leave, and yet it had the lowest inflation rate at 4%. New York was also one of the top three places in the country that people were leaving, but it had the second-lowest inflation rate 4.6%.
Experts say migration is actually a driver for inflation.
“An influx of people moving to a popular, relatively affordable place like Atlanta increases demand for housing and transportation, pushing up prices on those things and contributing to soaring prices on everything else, from food to utility bills,” Redfin Deputy Chief Economist Taylor Marr said.
The consumer price index rose 7% in December from a year ago, according to the Labor Department, marking the fastest increase since June 1982.
However, even with red-hot inflation, Marr said that “new residents are winners because the cost of living is still low compared to where they came from.”
FOX Business’ Megan Henney contributed to this report.