In this Insights Series Post we thought we would summarize and highlight a report published by Placer.ai that details Domestic Migration trends in 2025 and its implications for real estate investment moving forward. If you are not familiar with Placer.ai we highly recommend checking them out. They publish all types of research reports relevant to our industry that are typically a quick read but very insightful.
In-Migration Winners: Between January 2021 & January 2025 South Carolina (+3.6%) and Idaho (+3.4%) lead the way in terms of percent growth, followed by Nevada (2.8%), Montana (2.8%), Florida ( 2.1%), South Dakota (2.1%), Wyoming (2.0%), North Carolina (2.0%), and Tennessee (1.9%). Keep in mind the percentage increase is reliant on the actual base population count, meaning small states can grow at a large percentage with fewer new people than large states.
Out Migration: Not surprisingly, California (-2.2%), New York (-2.1%) and Illinois (-1.9%) experienced the largest reduction in population for this same time period. The report cited soaring housing costs and the rise of remote work as key reasons for the continued reduction.
Migration Patterns Have Stabilized in 2024
Several migration trends seem to have leveled off over the past year, which could be a reflection of rising mortgage interest rates, which has reduced home buying & selling, and an increased push by corporations for employees to return to the office. Several states that have struggled with out-migration have begun to see minor positive inflows over the past year. These include Michigan, Minnesota, Virginia, Ohio and Oregon.
In addition to these states, several major metros have experienced this same stabilization over the past 12 months with the exception of Phoenix, and maybe Dallas.
Where are Californians and New Yorkers Going?
This graph says its all.
Here is a link to the full report: https://www.placer.ai/anchor/reports/the-great-slowdown-domestic-migration-into-2025?gated=true