Immigration has increased in recent years, adding about 6 million people to the U.S. in 2022 and 2023 alone. But while this population growth has accounted for 100,000 new homeowner households, domestic migration appears to be the main driver of housing demand in the U.S., according to real estate marketing platform Realtor.com. High living costs in states such as California, New York, and Illinois are prompting residents to relocate to more affordable areas of the country, including Texas, Florida, and the Carolinas, where they can find larger homes and an improved quality of life.
This shift has increased the demand for housing in these new destinations. As a result, homebuilders and rental developers are focusing more on building in these growing regions.
Migration patterns are changing again after a big wave of relocation during the COVID-19 pandemic. New trends have emerged, with places such as Orlando, FL, and Salt Lake City seeing negative domestic migration; Sacramento, CA, and Indianapolis staying on the positive side; and Austin, TX, almost plateauing after a huge boom from the pandemic. Read more
