MMG RESEARCH

Domestic Migration Trends | 2023

According to the U.S. Census, 7.6 million people moved between states in 2023, down from 8.2 million in 2022 and 7.9 million in 2021. The data show that state-to-state movers made up 19% of all movers in 2023, a proportion relatively similar to those in 2021 and 2022. States in the South continue to lead the nation in domestic migration inflows and population gains, with Texas, Florida, and the Carolinas among the biggest gainers last year. From 2022 to 2023, 28 of the top 30 metro areas with the highest positive domestic migration were in the South. Negative migration trends continue to contribute to population losses in the Northeast and Midwest, as well as in California, which saw the largest numerical net decline. New York, Illinois, and New Jersey followed with the largest net migration losses

Outmigration rates—the percentage of people moving out of a state as a share of that state’s total movers—were higher for states in the Northeast and West. The District of Columbia had the highest outmigration rate at 46%, followed by Alaska, Hawaii, New Hampshire, and Maryland. Texas had the country’s lowest outmigration rate at 11%, followed by Ohio and Indiana, which both had outmigration rates of only 14%.

Where are they moving to?

Nearly all the states with the largest net migration gains were in the South and Southeast. Indiana was the only state in the top 10 that was outside these regions. Although North Dakota observed the largest percentage increase relative to its base population, its net migratory gain was only around 13,600 and only the largest numerical increases are considered since they will have the greatest impact on regional housing markets.

Some of the largest state-to-state migration flows occurred between highly populated states. The two largest flows came either to or from the four most populous states: California to Texas and New York to Florida. New York also lost several people to neighboring New Jersey, while Florida saw significant outflows to both Georgia and Texas, which were offset by high in-migration from numerous other states.

Texas

Texas saw the largest net migration gain in 2023, adding over 133,000 people through domestic migration. The largest share (23%) of people moving to Texas came from California, followed by 12% from Florida; while Oklahoma, New York, and Louisiana each accounted for 7%.

Florida

Florida saw the highest inbound migration from New York, which accounted for 17% of residents who moved to the state in 2023. Other popular former residences included Georgia, California, Texas, and New Jersey, each contributing around 10% of Florida’s inflow.

North Carolina

North Carolina saw a net gain of 106,592 people through domestic migration in 2023, representing a 1.0% population increase. Of the inbound migration, 21% came from Florida, while South Carolina, New York, and Virginia each contributed around 15%.

South Carolina

South Carolina had the second-highest population growth rate due to migration, adding 68,667 people and increasing its population by 1.3%. Of the inbound migration, 24% relocated from North Carolina, while Florida and Georgia each accounted for around 15%, indicating a migratory pattern largely confined to the Southeastern region.

Inflows Starting to Decline

Net migration gains have slowed over the past three years in most states that saw significant increases in 2023. Among the top ten states for inflows, seven experienced declining migratory gains from 2021 to 2023 as the effects of the pandemic eased and more companies reinstated in-office work requirements, reducing worker relocations. Only North Carolina, Virginia, and Indiana bucked this trend. Meanwhile, in states with net migration losses, the rate of decline has generally remained steady or worsened. Only five of the 17 states with net migration losses in 2023—New York, California, and Maryland—have seen improvements in migration levels since 2021.

Conclusions

Similar to overall population growth trends, Sun Belt states were the biggest winners for domestic migration in 2023. Texas and Florida again led in growth, while North and South Carolina also saw significant inflows, primarily from other states within the Southeastern region. California and New York had the most significant losses, each experiencing a 1% population decline due to outmigration, with most movers relocating to Texas from California and to Florida from New York.

Texas consistently ranked as a top destination for movers nationwide, attracting 10% to 20% of the outflows from the four states with the largest net losses, followed by Florida. The Carolinas were also outperformers for positive net migration and have consistently been ranked among the top three states for migratory growth since the onset of the pandemic. However, since 2021, net migration gains have slowed in most states that were experiencing increases. Although the inverse of this trend was not observed among most states that had net migration loses, California and New York stand out as some of the only such states that saw improvements from 2021 to 2023.

Overall, the states gaining the most people have several factors in common, including a warm climate, favorable business environment, and below average living costs. Nearly all of the top states for migratory growth have significantly lower state income tax rates than those losing the most people, which typically also have colder climates and higher living costs. With the exception of Florida, the top five states for in-migration had Cost of Living Index scores below the national benchmark and ranked among the 25 most affordable states. Conversely, excluding Illinois, the top states for migratory losses ranked 46th or higher for affordability. These factors suggest that movers are primarily seeking warmer, more affordable locations, and investors would benefit by tracking these migratory trends.

Full Data Table:

Sources: State Rankings by Outmigration Rate & Inflows Distribution by State Maps Powered by Bing | Copyright GeoNames, Microsoft, TomTom, U.S. Census Bureau

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