Map of states people are moving to

For the majority of Americans, it’s not uncommon to move to a new state. In fact, around 60% of the population has reported moving states 1-4 times in their lives. In 2022 alone, around 12.6% of Americans moved states, driven by various factors like cost of living, better job opportunities, or proximity to family. More recently, remote work has given people the flexibility to leave high-cost areas for low-tax states that offer more affordable living costs. As we near 2025 and continue to experience changes in our economy and lifestyles, these trends will likely shape the future for interstate relocation.

Relocation Trends

Amongst the top states people are moving to, they are all driven by affordability, job opportunities, and quality of life. The top states include Florida, Texas, North Carolina, and Georgia each having its own appeal.

  • Florida: Other than drawing retirees with its tax-free retirement income, Florida is known for its warm weather and abundance of outdoor activities. Additionally, that state has a thriving economy with plenty of job opportunities and no state income tax, making it inviting to all ages.
  • Texas: Compared to coastal states, Texas has some of the most affordable housing options in the country. With job opportunities across numerous industries and no state income tax, it offers a diverse range of lifestyles, from the big city to small town living and even coastal areas.
  • North Carolina: From its natural beauty to its growing tech and healthcare industries, North Carolina is growing in popularity amongst young professionals. It’s also another state with low taxes and affordable cost of living being 4% lower than the national average.
  • Georgia: With a thriving job market and a vibrant cultural scene, Atlanta has become one of the top cities attracting new residents. Offering low taxes, affordable housing, and diverse landscapes ranging from beaches to forests and mountains, it provides an appealing mix for those seeking both career opportunities and outdoor adventure.

Factors Driving Relocation

While a variety of different factors impact the reasons for interstate moves, the number one reason for moving is due to increased cost of living. Rising housing costs and cost of living in places like California and New York have become unsustainable for many people.

  • Housing Costs: High housing costs have impacted moving trends for years now. According to USA Today, the average home value in states like California or New York are almost 3 times higher than states like Texas or North Carolina (if not more.) This drives the cost of living up, making it increasingly difficult for residents to afford quality housing.
  • Remote Work: Over the years, we have seen an increase in remote work which has had an impact on where people choose to live. With the flexibility to work from anywhere, more people are choosing to live in lower-cost areas rather than being tied to higher-cost regions closer to where they work.
  • Taxes: State income tax is another factor driving people to relocate. States like New York, California, and Illinois, have some of the highest state income tax in the nation. Meaning less money going in residents' pockets. Lower tax states like Florida, Texas, and Tennessee, are more appealing for those who want to keep more of their earnings to put toward the things they want and need.

With 2025 approaching, the need to find more affordable living will continue to drive interstate relocation. People are continuing the trend of moving to states with lower taxes, affordable housing, and thriving job markets for a better quality of life. The increase in remote work has opened up more work flexibility allowing people to live in these more affordable areas without giving up their job. We will likely see these trends progress in the years to come as we continue to see changes in our economy and way of life across the U.S. shaping where Americans choose to call home.