Americans Fleeing Costly States: Looking For Affordable Living
As the cost of living continues to rise, Americans are increasingly seeking refuge in more affordable living, lower-density metro areas. The 47th annual National Movers Study from United Van Lines sheds light on these migration trends, revealing where people are flocking to and fleeing from in 2023.
Migration Patterns: Popular States for New Residents
According to the study, Vermont, South Carolina, Arkansas, Rhode Island, and Washington, DC, saw significant influxes of new residents. Vermont, in particular, maintained its position as the top state for inbound migration for the third consecutive year. These states attract people seeking a better quality of life, lower population density, and, in many cases, better financial incentives.
For retirees, the most attractive states were Florida, Delaware, South Carolina, Maine, and New Mexico. These states are known for their favorable tax policies for retirees, making them popular choices for those looking to stretch their retirement savings further.
States People Are Leaving Behind
While some states are experiencing growth, others are seeing a mass exodus. The Midwest and West regions of the U.S. have seen increasing outbound migration. Here are the top five states Americans are abandoning:
1. New Jersey
New Jersey tops the list for the sixth year in a row, with 65% of its moves being outbound. The primary reasons cited for leaving include retirement (27%), moving closer to family (21.4%), and work transfers (16.4%). Despite only 4.5% of respondents citing the cost of living as their main reason for moving, it’s likely a significant underlying factor.
New Jersey is notoriously expensive, ranking 48th in affordability according to U.S. News. It also has the sixth-highest state and local tax burden in the country. A recent Monmouth poll found that about half of New Jersey residents wanted to leave the state, with the high cost of living being a major factor. Taxes also play a significant role, as 74% of those who left earned over $100,000 annually.
2. Illinois
Illinois residents are similarly eager to leave, with 51% expressing a desire to move out, primarily due to high taxes. Illinois has the seventh-highest state and local tax burden in the U.S. People who left did so for various reasons, including new job opportunities (26.1%), retirement (21.4%), and proximity to family (19.7%).
Despite the state’s cultural and economic offerings, the financial strain of living in Illinois is pushing many residents to seek greener pastures.
3. North Dakota
North Dakota experienced the third-highest number of outbound moves in 2023. Half of these moves were due to new job opportunities or work transfers. Despite its high affordability ranking (8th overall), North Dakota’s sparse population and limited job opportunities in certain industries make it a less appealing place to live for some.
The state’s harsh winters also contribute to the outflow, with many retirees looking for warmer climates and family connections driving others to relocate.
4. New York
New York State ranks fourth in outbound migration. Residents cited family proximity (24.8%), retirement (21.9%), and work transfers (19.3%) as their main reasons for leaving. The 2024 Marist Poll highlights the cost of living as a significant issue, with 48% of residents finding it not very affordable and 33% finding it not affordable at all.
New York has the highest state and local tax burden in the country and ranks 45th in affordability. The trend is expected to continue, with 37% of New Yorkers planning to leave within the next five years, primarily due to the high cost of living.
5. Michigan
Michigan saw the fifth-highest number of outbound moves in 2023, despite having the fifth-lowest tax burden in the country and a median affordability ranking (22nd). The primary reason for leaving was new job opportunities or work transfers (30.5%), largely driven by the state’s “brain drain.” Michigan loses thousands of post-graduate students annually, especially those in knowledge economy fields.
Conclusion
The migration trends in 2023 highlight a growing disparity in the cost of living and quality of life across the United States. While some states attract new residents with affordability and favorable tax policies, others are losing people due to high costs and limited job opportunities. As Americans continue to seek more sustainable living conditions, these trends are likely to persist, shaping the demographic landscape of the nation.
