The COVID-19 pandemic profoundly shifted the way we live and work, with ripple effects continuing to reshape U.S. migration patterns in 2023 and 2024. Early in the pandemic, we saw a mass exodus from densely populated urban areas, particularly in expensive coastal cities like New York and San Francisco, as remote work allowed many to seek affordability, space, and a better quality of life elsewhere. But now that the initial shock has passed and the economy has stabilized, where are Americans moving today, and are the patterns established during COVID still holding strong?
The Sunbelt Still Shines Bright
Migration to the Sunbelt—a region encompassing states like Florida, Texas, Arizona, and the Carolinas—continues to be a dominant trend, even three years after COVID. This pattern mirrors the pre-pandemic era, but it’s more pronounced today due to ongoing shifts in housing prices, lifestyle preferences, and job opportunities.
The 2023 and 2024 data show that states like Florida and Texas remain the top relocation destinations, with people drawn by lower taxes, more affordable housing, and warmer climates. For example, Florida has seen significant population increases, with migration accounting for more than half of its growth between 2021 and 2023. Texas, which welcomed over 470,000 new residents in 2022 alone, continues to be a magnet for families and young professionals alike.
One emerging trend, however, is the increase in high-income households moving to these states. While Sunbelt migration used to be driven primarily by retirees, recent data shows that younger, wealthier professionals are also relocating, thanks to the rise of remote work, which allows more flexibility in choosing where to live.
Return to Urban Centers? Not Quite Yet
While some urban cores like New York City have seen a slow trickle of returnees in 2023, the “urban flight” that began during COVID hasn’t entirely reversed. In fact, many smaller cities and suburban areas that gained popularity during the pandemic are continuing to attract new residents.
Places like Boise, Idaho, and Nashville, Tennessee, have maintained steady growth, thanks to their relatively affordable housing markets and strong job opportunities. These areas, which were once considered secondary markets, have cemented their status as desirable alternatives to pricier coastal metros.
Even within metropolitan regions, there's a growing preference for the suburbs over city centers. As hybrid work models become the norm, people are prioritizing space and quality of life over proximity to the office. The suburban migration trend, long associated with families, now appeals to a broader demographic, including millennials and even some Gen Zers.
New Trends Emerging: The Rise of Remote-First Towns
Another post-COVID trend that's become more prominent in 2023 and 2024 is the rise of "remote-first" towns. These are smaller communities that have embraced the digital nomad lifestyle, marketing themselves as ideal locations for people who can work from anywhere. Towns like Bentonville, Arkansas, and Missoula, Montana, are drawing remote workers with promises of outdoor recreation, affordable living, and a slower pace of life.
According to a 2023 Redfin report, remote workers now make up a significant portion of movers to these towns, signaling a long-term shift in how and where we live and work. Many who left cities during the pandemic are settling into these communities permanently, rather than returning to their former urban lives.
What Does the Future Hold?
As we move further into 2024, it seems the migration patterns established during COVID-19 are here to stay. The Sunbelt will likely continue to attract new residents, driven by affordability, job opportunities, and lifestyle preferences. Smaller cities and remote-first towns are becoming increasingly popular, offering alternatives to the high cost of living and congestion found in larger metropolitan areas.
For those looking to understand how migration impacts home values, it’s clear that regions seeing an influx of new residents—particularly in the Sunbelt—are experiencing significant real estate market growth. Rising demand in these areas is pushing home prices up, offering opportunities for real estate investors and homebuyers alike.
For more on migration trends and their impact on home values, check out our earlier article on How Remote Work Has Changed Real Estate.