Where Americans Are Moving and Why
Although pandemic-era migration has slowed, Americans are continuing the trend of moving to the South and to Sun Belt states like Texas, and the Carolinas. The main reasons they’re moving to a new state are housing affordability, family proximity, job transfers, and retirement.
If you’re thinking of moving cross country, discover the areas that are growing and what’s attracting new residents to those states.
Why Americans Are Moving
Top reasons cited for moving are:
- Being closer to family.
- Job transfers or new job opportunities.
- Retirement, especially to warmer climates and more affordable
- More affordable housing and lower taxes.
- Shift to smaller cities and towns from larger metros.
Where Americans Are Moving
Most Americans are staying in the same county rather than moving to a new state. However, there is still significant inter-state migration. The most popular areas for inbound migration are states like Texas, and Oregon. These states have a combination of job opportunities, lower costs, favorable tax policies, and quality of life factors. These conditions are drawing residents away from expensive coastal markets.
Texas
Texas is experiencing high job growth driven by the tech, energy, and healthcare sectors. With no state income taxes, lower housing costs, and a wide range of outdoor environments to enjoy, it’s no wonder people are drawn to this state despite the high property taxes.
A large percentage of the people moving to Texas are Californians who are looking for affordable housing, corporate employees following company relocations, and young professionals who work in tech.
North Carolina
North Carolina appeals to people looking for a middle ground between expensive coastal states and less developed southern markets. North Carolina features a growing tech sector, mountains and beaches, large universities, and a moderate cost of living.
Inbound migration to North Carolina is led by educated professionals, retirees, and families from the Northeast looking for more affordable housing.
Arizona
Arizona, particularly the Phoenix metro area, is attracting large numbers of new residents. The draw is warm winters, a growing tech sector, and relatively affordable housing. The lack of daylight savings time is another popular feature of Arizona living, however surprising that sounds!
Transplants from California, retirees looking for warm, dry weather, and remote workers who want lower costs are at the forefront of inbound migration to Arizona.
Tennessee
The state of Tennessee, especially Nashville and its suburbs, is drawing in increasing numbers of new residents. With no state income tax, a lower cost of living, a thriving music and cultural scene, and a central location, Tennessee is an attractive option.
New residents in Tennessee are led by young professionals, musicians and creatives, and families from Illinois and California. Tennessee’s popularity has led to significant increases in housing prices, meaning that inbound migration may drop off in the coming years.
Oregon
Oregon is bucking the trend of people moving to a new state for the warm climate. The majority of people moving to Oregon say that they want to be closer to family. Still, Oregon is also attracting people from California and Washington State who want lower housing costs.
What to Consider When Moving to a New State
Moving cross country involves more than packing a truck. Do the research before you make a final decision, and plan carefully to ensure a smooth transition.
Financial Considerations
Beyond the cost of housing itself, there are pricing and expenditure differences from state to state, including:
- Groceries and dining can be 20% to 40% cheaper in many destination states, but higher in others. Access to reasonably priced food may be limited in smaller towns and rural areas.
- Utility expenses vary widely depending on the region. In some areas, you may not need air conditioning, while in others it’s vital and needs to be running 24/7 to deter mold from developing.
- Auto insurance rates vary widely by state.
- Property taxes are higher in some states, often to compensate for the lack of state income tax.
- Sales taxes can be 8% to 10% in states with no income tax.
Career Issues
Moving to a new state can impact your career:
- Company salary adjustments are not uncommon in lower-cost areas.
- Professional licensing requirements may be different when moving to a new state.
- Networking, career advancement opportunities, and job growth in your field may be better or worse where you’re moving.
Housing Market Buy/Sell Timing
When moving to a new state, you’ll need to make decisions about the timing of your purchase and sale. Closing both deals on the same day can be challenging, so you’ll likely need to handle the gap or the overlap with temporary housing or bridge financing. The right strategy depends heavily on market conditions; working with experienced real estate agents on both ends is critical.
Practical Considerations When Moving to a New State
The nuts and bolts of moving can be tedious, but if you stay organized, you’ll sail through these tasks:
- Check your new state’s laws to make sure you’re compliant with matters like firearms regulations, vehicle requirements, and professional licensing standards.
- Update your driver’s license as soon as possible and register your vehicles.
- Redirect your mail and update your mailing address You can almost always do this online.
- Change your insurance policies for auto, health, and home.
- Register to vote.
- Transfer your prescriptions.
- Update your estate planning documents, as laws vary by state.
Emotional and Social Aspects of Moving to a New State
Moving cross country represents an exciting new start, but don’t overlook the emotional and social side. You’ll be leaving behind relationships that you’ve worked hard to establish, a neighborhood you’re accustomed to, and the comfort of knowing how things are done in your community.
Expect that it will take at least six months to feel settled, and longer to develop friendships. To ease the transition, stay connected to old friends via video calls and social media and give yourself permission to feel homesick from time to time. Be active and intentional about fitting into your new community. Join community groups, clubs, or churches, take classes where you’ll meet new people, and explore your new area actively. You will need new favorite places, so go out and find them!
Moving to a New State
The trend in American migration is clear: people are moving away from high-cost, high-tax states toward affordable states with good job growth and a high quality of life. Florida, Texas, and the Sun Belt will likely continue to be destinations of choice for Americans moving to a new state. Will you be among them?
