By Maria Gatea
In 2023, approximately 7.5 million people moved interstate in the United States, a trend that remained relatively constant over the past decade.
At the same time, local moves are on a downward trajectory. In 2014, nearly 12% of the population – 37.6 million people – relocated within their state. By 2023, that number had dropped to 9%, or 30 million. High mortgage rates and unaffordable housing are discouraging many Americans from upgrading to larger homes or better neighborhoods. However, state-to-state relocations remain strong as people seek access to dynamic job markets and more affordable housing.
Who’s moving state-to-state? Gen Z and millennials lead the way
Gen Z adults are already catching up to millennials in terms of mobility. Each generation accounted for nearly 30% – or 2.2 million individuals – of interstate relocations in 2023. In contrast, Gen Xers and baby boomers are far less likely to make major moves.
Despite their similar mobility, Gen Z and millennials favor different destinations. Gen Zers gravitate toward South Carolina, Arizona and North Carolina, seeking a balance of affordability, job growth and lifestyle perks. Millennials, on the other hand, are drawn to economic powerhouses like Texas and Florida, where thriving industries coexist with still-accessible housing markets.
State-to-state movers also tend to be well educated. About 37% hold a bachelor’s degree or higher, compared to 26% of the general population. Home ownership remains a priority for these movers, with nearly 39% purchasing a home within their first year after relocating.
Another factor reshaping migration trends is the rise of remote work. With more companies offering flexible policies, individuals and families are moving to areas that offer a better quality of life, lower housing costs and greater home ownership opportunities. Remote workers now account for 20% of interstate movers, compared to a national average of 14%.
Southern states continue to attract the bulk of net domestic migration in the US
The southern U.S. has been a migration hot spot for over a decade, attracting hundreds of thousands of new residents each year. While Florida long held the top spot for net migration, 2023 saw Texas take the lead, welcoming nearly 138,000 new residents. Most newcomers arrived from California (98,000), Florida (51,000), Oklahoma (31,000), and New York (30,000). With the exception of Oklahoma, migrants from these states often find Texas’s housing market significantly more affordable, leading 37% of them to purchase homes shortly after relocating.
Florida remains a close second, with a net migration gain of almost 137,000 people in 2023. The state’s warm climate, lack of state income tax, and diverse amenities make it an attractive destination. Retirees are particularly drawn to Florida, as evidenced by baby boomers leading the influx. However, young professionals are also settling in the state for its growing job market, with 52% of new arrivals purchasing homes shortly after moving.
The Carolinas are also major migration magnets. North Carolina gained nearly 111,000 net newcomers, mainly from Florida and New York, while South Carolina added over 72,000 new residents. These states rank third and fourth nationally for net inbound migration and are experiencing a significant impact from domestic migration relative to their populations as well. North Carolina welcomes almost 10 newcomers per 1,000 residents, while South Carolina sees over 13 per 1,000. This influx is fueling economic growth but is also driving up housing costs over time.
Other southern states seeing high levels of inbound migration include Georgia, Tennessee and Oklahoma.
Western states on the rise
The western states of Arizona, Colorado and Nevada are also seeing robust levels of net domestic migration, attracting movers looking for job opportunities, outdoor recreation and lower housing costs particularly compared to California, which is the main source of newcomers for these three states.
Arizona saw a net increase of 57,000 new residents, with many newcomers attracted by the state’s rapidly expanding urban hot spots like Phoenix and Tucson. Job growth in tech, healthcare, and finance is fueling migration. More than 52,000 Californians moved to Arizona in 2023 alone, drawn by lower taxes and a more affordable cost of living.
Colorado remains a hub for professionals, particularly in technology, aerospace, and renewable energy. The state welcomed nearly 31,000 net newcomers in 2023, with millennials making up the largest share.
Nevada has maintained a decade-long trend of positive net migration, adding nearly 19,000 residents in 2023. The lack of state income tax, growing entertainment and tech industries, and lower housing costs compared to California continue to make Nevada an attractive destination.
California and New York top the list of states people are fleeing
Several states are seeing persistent population losses, though at a slightly slower rate than before. High living costs, rising taxes, and unaffordable housing markets remain the primary reasons for residents leaving California, New York and Illinois.
California lost nearly 257,000 residents to net migration in 2023, marking its 10th consecutive year of population decline. The state’s high housing costs, steep taxes and congestion in major metro areas like Los Angeles and San Francisco are pushing many residents toward more affordable alternatives in Arizona, Nevada and Texas.
New York continues to struggle with outmigration, particularly in New York City. The state’s high rents, property taxes and cost of living are prompting residents to seek lower-cost options. Many retirees and remote workers are choosing states like Florida and North Carolina. Additionally, businesses shifting operations to less expensive regions have contributed to New York’s population decline of 187,000AP S net residents in 2023.
Illinois and New Jersey are both facing an entire decade of negative net migration as well, with 2023 alone seeing population losses of 90,000 and 67,000 respectively. Moreover, about a third of those who are leaving Illinois and New Jersey are young Gen Z adults, a reality that might impact both states negatively in the long term.
Self-storage growth keeps pace with migration trends
As Americans relocate in search of better opportunities, the self-storage market has become an essential service, providing flexibility during transitions. This rising demand has fueled a surge in self-storage development, particularly in states experiencing high migration inflows.
Texas and Florida – two of the nation’s top destinations for new residents – have significantly expanded their storage inventories. Both states now exceed the national benchmark of 7 square feet per capita, with Texas at 11 square feet per capita and Florida at 9.3 square feet per capita.
Over the past five years, Texas added nearly 31 million square feet of new self-storage space – roughly 12% of its total inventory – while Florida delivered 33.5 million square feet, marking a 19% increase in its supply.
This robust development pipeline has helped keep rental rates in check. With supply keeping pace with demand, Texas storage units average $117 per month, while Florida units rent for around $139 per month. As migration continues, self-storage remains an accessible and cost-effective solution for those on the move.
