Affordability a Major Factor for Moving to Other States Post-PandemicBy Lisa Sturtevant, PhD
The COVID-19 pandemic led to lockdowns and shut-ins, but it also created opportunities for movers. Whether households made a long-distance move for lifestyle, family or financial reasons, some states were a draw for pandemic movers. According to IRS data, between 2020 and 2021, the biggest gainer was Florida, with 128,710 more households moving in than moving out. Texas, North Carolina, Arizona and Tennessee rounded out the top five. At the other end of the migration spectrum, California and New York were the biggest losers, with far more people leaving the state than moving in.
Net household migration and income by state, 2020 – 2021 Top 5 States Bottom 5 States
Higher-income households fueled pandemic moves It’s not just about the numbers of people who moved, but it’s also about their incomes. In the top five states, households moving in had significantly higher incomes than households moving out. The average household moving into Florida had an income of $148,115 compared to $71,840 for households moving out, for example. States losing population, on the other hand, generally saw an outflow of higher-income residents. Retirement, quality of life important drivers of pandemic moves Florida was the No. 1 destination for households leaving Illinois and Massachusetts, and the second-most popular destination for New Yorkers. Some of the movement to Florida was driven by demographics, as baby boomers are well into retirement age, and some used the pandemic as a reason to make a retirement move. But movers to Florida cut across demographics, and included many who took advantage of remote work to move south. While there has been a lot of press about Californians moving to Idaho, Idaho was just the eighth-most popular destination for households leaving California. The biggest draw was Texas, where home prices are less than half of what they are in West Coast markets. North Carolina and Tennessee saw more migrants from their neighboring states of Virginia and Georgia, also reflecting the draw of lower costs of living. Where are people moving now? Many of the factors that were important during the pandemic continue to affect migration patterns post-pandemic. Affordability is going to be an even more important factor, with mortgage rates remaining elevated, prices holding firm and job growth slowing. Homebuyers will still be looking for places with a high quality of life and the opportunity to afford to buy a home, and many will still have flexibility to move across state lines because they are working from home. Retirement is going to be a growing reason for moving in the coming years, which will drive migrants not only to Sun Belt states, but also to metropolitan areas that have attracted their children (and grandchildren) during the pandemic. As a result, expect Florida to continue to be a magnet for movers in the coming year, but also watch other states with relatively lower housing costs to emerge as winners in the post-pandemic housing market. For more information, please visit https://www.brightmls.com. |
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