Twin Cities Real Estate News

The Transition Realty Blog

Moving From State To State? Here’s Where People Are Moving From/To

Moving From State To State

According to a migration pattern study by Atlas Van Lines in 2019, it was established that more Americans are moving to Idaho compared to other states. Idaho continues attracting new residents for the second time since it was ranked number one by the same survey two years earlier. The study also found that many Americans are leaving New York. The survey had also ranked New York as the number one state many Americans are leaving five years earlier.

The study also concluded that 26 states had a balanced moving status. This means that the people moving in and out of these 26 states were equal. According to the data from the study, there was a significant decrease in moves between 2018 and 2019.

Movements into Colorado exceeded movements out of Colorado in 2018, the first time this had happened in ten years. Meanwhile, Oregon’s inbound status became balanced for the first time in 6 years. Texas, which had remained balanced from 2016, now had inbound status. Ohio also achieved a balanced status for the first time in more than 15 years.

The Other States With Inbound Moves

The other states with the highest rate of inbound moves included North Carolina, New Mexico, and Washington. The states with a high rate of outbound moves were New York, South Dakota, West Virginia, and Illinois.

The states that are experiencing an alarming influx of new residents were seen to have low costs of living, job growth, and temperate climates. For example, Florida had a high population increase, with most of the people coming in from New York. The Census Bureau reported that 63,722 people moved to Florida from New York in 2018. Georgia was the second-largest source of inbound movement into Florida.

 

Reasons for Inbound and Outbound Moves

According to data from the North American Moving Service, Idaho came in at number two, as the state with the highest inbound moves. Arizona was the leader of inbound moves during this period. The main reasons for these inbound and outbound moves have been sighted as the right to work, taxes, the best states for business, tax climate, state fiscal rankings, and economic performance.

1 – Right to Work

All the top inbound states are right-to-work states, while most of the outbound states are forced-unionism states. Right-to-work states impact positively on employment, innovation, investment, and economic growth. Therefore, most Americans are leaving the forced-unionism states to seek job opportunities in right-to-work states.

2 – Taxes

The inbound states have a low tax rate compared to the outbound states. Similarly, corporate tax in the inbound states is also lower than in the outbound states. According to the law of economics, when you tax something, there is less of it; therefore, it is no wonder that Americans and organizations are leaving high tax states to move to low tax states.

3 – Best States for Business

According to the Forbes Best States for Business, North Carolina was the best US state for doing business last year. The annual state ranking measures costs, regulatory environment, labor supply, growth aspects, quality of life, and current economic climate. Most of the top inbound states were among the best US states for business, while the top outbound states were among the least favorable states for doing business.

4 – Business Tax Climate

Each year, the Tax Foundation presents a report on the State Business Tax Climate Index. This Index records each US state’s business income taxes, individual taxes, property taxes, sales taxes, and unemployment taxes. According to the latest rankings, the top inbound states were among the best business-friendly states, while the top outbound states were the worst business-friendly states.

5 – State Fiscal Rankings

According to a report by the Mercatus Center, the fiscal status of America’s states affects its citizens. The Mercatus Center ranks a state’s financial health based on short and long term debt, among other fiscal obligations like healthcare benefits and unfunded pensions. The center’s report in 2017 ranked the top inbound states in the above-average category. Most of the outbound states were ranked in the below-average category of the state fiscal rankings.

6 – Economic Performance

Economic performance is mainly determined by looking at a state’s GDP, job growth, and employment rate. The top inbound states had a high GDP growth and job growth rate while the top outbound states had a low GDP growth and job growth rate.

 

Summing It Up

Migration patterns of US households follow predictable patterns that are dependent on the differences among states in terms of economic growth, labor market, fiscal health, among other indicators of better livelihood. Americans are fleeing from states that are economically stagnant, fiscally unhealthy, high taxes, and few job opportunities. These Americans are moving to economically vibrant and business-friendly states with low taxes and more economic opportunities.


About Transition Realty

Farmington Real Estate Agent Steve Lehmeyer Transition Realty owner Steve Lehmeyer specializes in helping people manage real estate transactions in the Minneapolis/St. Paul area. His experience in the Minnesota real estate market spans 20 years. Steve and his team work with clients to buy & sell single-family homes, townhouses, condos, lake homes, and investment property.  Download a free home search app for your smartphone or search the MLS at TransitionRealty.com.