The U.S. populace is making a change as more residents head southward, driven by lower taxes, lower housing costs, and more job opportunities.
Key Details
- While populations in other areas of the country shrink, the South is growing—particularly Florida.
- The southern U.S. outpaced other regions of the U.S. last year by more than 1.3 million people.
- In comparison, the North and Midwest lost overall residents. The West grew by 153,000 people.
- Moving south can have its advantages for residents. Florida, in particular, stands out to many movers as the state has no income tax and relatively low taxes in other categories. By comparison, for New York residents making between $13,901 and $80,650 a year, the state income tax rate is 5.85%.
- In addition to lower taxes, for the first time in nearly 40 years, Florida has more available jobs than New York, Bloomberg reports.
- Beyond lower taxes and more job opportunities, movers may also find more affordable housing further south, though growing populations have likely influenced more recent price increases.
Why it’s news
Florida has one of the fastest-growing populations in the U.S., according to a Census Bureau report. The Sunshine State’s population increased by 1.9%, reaching more than 22 million people. Other southern states—Texas, North and South Carolina, Tennessee, and Georgia—saw the highest domestic net migration. By comparison, Louisiana, Massachusetts, New Jersey, Illinois, New York, and California saw a net decrease in population.
The rise of remote work opportunities has undoubtedly influenced workers’ decisions to head south and avoid colder climates, but other factors may be playing a role in Americans’ increased interest in Florida. Florida’s lack of state income tax is an appealing perk for many.
Though the state has no income tax, it has a 6% sales tax and a 5.5% corporate income tax. By comparison, New York’s income tax ranges from 4% to 10.9%, depending on income. The Empire State also has an average 1.4% property tax and 8.52% combined state and local sales tax.
Here are the states with the greatest net migration changes. States without an income tax are listed in bold.
↑ Florida: 318,855
↑ Texas: 230,961
↑ North Carolina: 99,796
↑ South Carolina: 84,030
↑ Tennessee: 81,646
↑ Georgia: 81,406
↓Louisiana: -46,672
↓Massachusetts: -57,292
↓New Jersey: -64,231
↓Illinois: -141,656
↓New York: -299,557
↓California: -343,230
The rise of remote work opportunities has undoubtedly influenced workers’ decisions to head south and avoid colder climates, but other factors may be playing a role in Americans’ increased interest in Florida.
The rise of remote work opportunities has undoubtedly influenced workers’ decisions to head south and avoid colder climates, but other factors may be playing a role in Americans’ increased interest in Florida. Florida’s lack of state income tax is an appealing perk for many. Though the state has no income tax, it has a 6% sales tax and a 5.5% corporate income tax. By comparison, New York’s income tax ranges from 4% to 10.9%, depending on income. The Empire State also has an average 1.4% property tax and 8.52% combined state and local sales tax.
The lack of income taxes is drawing more workers to Florida as it recently passed New York in the number of workers in the state. For the first time since the Bureau of Labor Statistics started collecting data, Florida narrowly surpassed New York with 9,578,500 nonfarm jobs in Florida and 9.576,100 in New York.
While the trend of American workers moving southward has been ongoing for years, the pandemic hastened the shift. In addition to remote workers relocating, Florida has become increasingly attractive to tech and finance workers while New York offices have struggled, Bloomberg reports.
In December 2022, Florida’s unemployment rate was 2.5%. New York’s was 4.3%.
Lower housing prices could also be a driving factor pushing Americans further south, especially as remote work allows workers greater opportunities for work locations. In Florida, the average home value is $377,816, while in New York, it is $411,206, according to Zillow.
Despite the lower average price in Florida, the current average is 14.2% higher than the previous year. New York prices, in comparison, have risen 5.6% in the last year. However, Florida homes sit on the market for an average of 31 days, while New York homes generally sit for around 43 days.
Aside from financially-driven incentives to move south, Florida’s growing popularity may be somewhat politically driven. While Democrat-led states like California, New York, New Jersey, Michigan, and Illinois are experiencing the highest numbers of residents leaving the state, the Republican states of Florida, Texas, Tennessee, Ohio, and Arizona have some of the highest migration rates, Forbes reports.
Notable quotes
In his 2023 Inaugural Address, Florida Governor Ron DeSantis addressed the state’s growing population. He attributed Florida’s increased popularity to maintaining his administration’s commitments.
“Four years ago, we promised to pursue a bold agenda. We did just that, and we have produced results: We said we would ensure that Florida taxed lightly, regulated reasonably, and spent conservatively – and we delivered. We promised we would enact big education reforms – and we delivered. We said we would end judicial activism by appointing jurists who understand the proper role of a judge is to apply the law as written, not legislate from the bench – and we delivered,” the governor said.