Where Are People Moving To?

Top states people are moving to

Migration trends have evolved significantly in recent years. While job opportunities remain a primary driver for homebuyers and renters, the rise of remote work has shifted priorities. By understanding these trends and where people are moving to, you can stay ahead of the curve in your real estate strategies.

Most popular destination states

Texas, Florida, and Arizona consistently attract newcomers, and for good reasons. Texas continues to see strong growth thanks to its relatively low cost of living, job opportunities (especially in tech and energy), and no state income tax.
In Florida, year-round sunshine and an expanding job market — especially in healthcare, tourism, and tech — are bringing in residents from northern states and beyond. Arizona appeals to those seeking affordability and a warmer climate, especially retirees and those ready to swap snow for sun.

States experiencing outflow

On the flip side, certain states are experiencing a higher outflow. So where are people moving from? States that have faced challenges with housing affordability, high taxes, and restrictions on urban living — like  California, New York, and Illinois — are seeing residents leave.

A recent study from the Census Bureau indicated that more than 700,000 people left California between 2020 and 2023, many of them seeking more affordable housing and lower taxes in the Sun Belt. Beyond affordability, lifestyle factors also impact where people are moving to, with more seeking locations that offer both a reasonable cost of living and a balanced pace of life.

Generational nuances

Each generation has its own moving trends, and it’s important to understand what cities people are moving to, and what draws them there. Millennials, for example, have flocked to states like Colorado and Washington, drawn by affordability, remote work options, and a strong sense of community. More than one-third of Millenials in Boulder, Colorado moved there in the last year, likely attracted by its outdoor lifestyle and balanced work-life culture.

Gen Z, the newest wave of buyers, has different real estate motivations. Gen Z buyers and renters are looking to move to places with a lively cultural scene and job opportunities — Washington, D.C. and New York City are some of the top cities people are moving to. Many prioritize work flexibility and seek places offering a mix of entertainment, amenities, and future growth potential.

Meanwhile, Boomers are favoring states like Florida, Arizona, Nevada and other locations with warm climates and favorable tax policies. They’re often looking for low-maintenance homes in active, well-connected communities, where they can enjoy their retirement years without the upkeep of a larger property.

Relocation trends

As work and lifestyle priorities evolve, so do moving patterns. Today’s buyers are redefining the “ideal” place to live, and it’s opening up new opportunities for real estate professionals.

The rise of the Sun Belt

What are the Sun Belt states, and why are they increasing in popularity?
The Southern and Southwestern regions — known collectively as the Sun Belt — are attracting new residents in record numbers. With its warm climates, affordable cost of living, and strong job markets, the Sun Belt is appealing to young professionals, families, and retirees alike. In addition to warm weather and lower taxes, the top cities people are moving to also offer a diverse range of job opportunities and amenities, from tech hubs to thriving arts scenes.

The Sun Belt region now holds 50% of the national population, which is expected to rise to 55% by 2040.

Real estate professionals should keep a close watch on cities like Austin, Raleigh, and Orlando, which are consistently ranked among the top cities people are moving to, and experiencing rapid expansion as large corporations relocate and create job opportunities in these areas. 

The shift to suburban and exurban areas

The migration from cities to suburban and exurban areas began accelerating during the pandemic, as remote work made it possible for more people to prioritize space and comfort over proximity to the office. Now, buyers are continuing to choose suburbs and even exurbs for their larger homes, increased privacy, and lower housing costs.

Suburban and exurban communities — defined as those located 30 miles or more from major urban centers — are experiencing steady growth as buyers consistently rank them among some of the best places to move to. According to the U.S. Census Bureau, some of the fastest-growing areas in recent years are located on the outskirts of large metro areas, like Phoenix, where residents can enjoy a quieter lifestyle with access to nearby city amenities.

What these trends mean for real estate professionals

With a clear understanding of recent relocation trends, real estate professionals have a unique opportunity to redefine how they approach clients and the markets they serve. These are key strategies to help you leverage this data effectively.

Understanding new profiles 

As different generations gravitate toward specific regions, it’s crucial to understand the motivations and lifestyles that drive their choices. Here’s a breakdown of key buyer profiles:

Marketing to relocators 

When marketing to relocators, focus on what makes your region appealing. 

• Promote Local Amenities: Showcase the unique features of suburban areas, such as parks, schools, and community events. Highlight properties with spacious yards and home office potential to attract families and remote workers.
• Leverage Online Platforms: Utilize social media and real estate websites to create engaging content that addresses the concerns and interests of relocating buyers. 
• Create Relocation Packages: Develop resources that guide relocating clients through the process and to help them feel more at home before they even arrive.

Understanding what cities people are moving to allows real estate professionals to tailor marketing materials that highlight key attractions, such as community events, local cuisine, or walkability, that might appeal to incoming residents. For more support, access the marketing resources available in our American Home Shield® Real Estate Pro portal.

Position yourself in growing markets

As more people move across state lines, buyers will likely seek real estate professionals with relocation expertise. Position yourself as an expert on popular moving destinations, or develop referral partnerships with real estate professionals in other states to expand your network and build credibility. 

In general, staying up-to-date on migration statistics can help you pinpoint which areas are seeing growth, letting you fine-tune marketing strategies. Data on local amenities, job growth, and housing prices can make your listings stand out and align your services with the lifestyle changes clients are prioritizing.

Partner with American Home Shield

If you want to take your services to the next level, share the benefits of an American Home Shield home warranty with your clients. American Home Shield offers home warranty plans that cover parts of your essential home systems and appliances, helping to reduce the unexpected costs of covered repairs and giving homeowners greater confidence in their investments.

By offering American Home Shield warranties, you can give your clients peace of mind while demonstrating your commitment to their satisfaction. Learn more about becoming a Real Estate Pro today. For more of our real estate resources, check out our Home Matters blog.

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