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Interstate Migration Series
Where are Americans moving, and why?
According to federal tax data, there were 33.9 million interstate moves during the 5-year period 2018–2023. In 2023 alone, 6.7 million Americans packed up and moved across state lines, taking their income, their tax dollars, and their economic gravity with them.
Which states gained the most residents and which states lost the most?
The five states with the highest positive migration rates are Idaho (+63.1), South Carolina (+53.6), Delaware (+42.5), Montana (+42.4), and Florida (+39.7). Meanwhile, the states with the highest negative migration rates are New York (-52.9), Alaska (-37.3), Illinois (-34.0), California (-32.2), and Hawaii (30.2).
Why are Americans leaving some states and flooding into others?
The standard story is that people flee expensive places such as California or New York and move to cheaper ones in the South and Mountain West. Another explanation is that they’re chasing sunshine too (hence big net gains in the Sunbelt region).
A closer examination of migration patterns reveals that people are moving to states with more abundant housing supply, and away from states with more restrictive housing. They also seem to be moving to states with greater economic freedom, especially states with lower overall tax burdens.
Choose a state and read the Policy Spotlight to see how migration trends have shaped its economic outlook and explore policy reforms related to taxes, housing, and labor markets that can help sustain growth or reverse outmigration.
