While the majority of the country experiences low migration rates, the states we’ll mention have been successful in attracting new residents. While pleasant year-round weather in the Sun Belt region is certainly appealing, it's not the sole reason for the shift in migration patterns.
Migration rates in the post-pandemic economy have reached historic lows across the United States, with nearly 70% of ZIP codes experiencing fewer inbound moves in 2022 than the previous year. However, a few states have experienced a slight increase in population, making them appealing options for real estate investments in 2023. Let's look at the four best states to invest in real estate this year based on migration data and economic recovery.
Domestic Migration 2022: 84,030
Population Change 2021-2022: 1.7%
Myrtle Beach, SC: 55.6%
South Carolina's expanding job market, low-cost living, and family-friendly environment make it an appealing destination for those looking for a fresh start. South Carolina is an ideal state for families and young professionals looking to achieve a healthy work-life balance. Natural beauty, coastal charm, and a strong sense of community all contribute to the state's allure as a real estate investment location.
Domestic Migration 2022: 230,961
Population Change 2021-2022: 1.6%
Houston, TX: 55.7%
McAllen, TX: 55.1%
Texas recently surpassed the 30-million-person mark, joining California as one of only two states with a resident population of more than 30 million. The population of Texas is growing due to a combination of factors such as net domestic migration (230,961), net international migration (118,614), and natural increase (118,159). The state's strong economy, diverse industries, and business-friendly environment make it an appealing place to invest in real estate.
Domestic Migration 2022: 318,855
Population Change 2021-2022: 1.9%
Ocala, FL: 57.1%
Tallahassee, FL: 56.6%
Deltona, FL: 55.7%
Miami, FL: 55.2%
Florida emerged as the fastest-growing state in 2022, experiencing a population increase of 1.9% from 2021 to 2022. This marks the first time since 1957 that Florida's population has grown faster than any other state in the country. The state's warm climate, diverse attractions, and thriving job market make it an enticing destination for individuals and families seeking change.
Domestic Migration 2022: 99,796
Population Change 2021-2022: 1.3%
Charlotte, NC: 56.6%
North Carolina boasts excellent educational institutions, thriving job markets, and family-friendly neighborhoods, making it an appealing state for relocation. With pleasant temperatures throughout the year, residents can also enjoy numerous outdoor activities, ranging from coastal areas to the Blue Ridge and Great Smoky Mountains. The combination of economic opportunities and high quality of life positions North Carolina as an ideal state for real estate investments.
Considering these migration patterns and the economic recovery, it is evident that Florida, Texas, North Carolina, and South Carolina are the best states to invest in real estate for 2023. Their year-round pleasant weather, family-friendly environments, and booming post-pandemic economies make these four states highly sought-after destinations for residents looking to move away from major cities. If you're a real estate investor seeking profitable opportunities, these states offer a promising landscape for your investments.
Because of their strong economic recovery from the pandemic, these states saw an increase in inbound migration. They have not only recovered all of the jobs lost during the pandemic, but they have also experienced an average job growth rate of 5% since March 2020. This rate of job recovery is more than twice that of the rest of the country, making these states very appealing to both individuals and businesses.
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