Rising mortgage rates and continued high prices are dampening the previously boiling US housing market, causing it to slow considerably. Even so, people are still looking to buy homes. And in some cases, these buyers are considering leaving the state.
But where are the movers likely to go? Do they stay as they are or do they venture to a new place? To answer these questions, LendingTree looked at data from January 1, 2022 through October 10, 2022, to analyze homebuyer travel patterns in each of the nation’s 50 states.
While a majority of movers are looking to stay in the state, a significant portion are looking to move elsewhere. And some states are more popular destinations for these potential movers than others.
Main findings:
- On average, 82.66% of movers are looking to stay in the state they live in. People tend to form social and economic ties with the areas where they live, while the high costs of moving out of state can cause movers to stay in the same state. That said, a lower percentage of movers are looking to stay in their state than at the height of the pandemic, when an average of 85.38% of movers wanted to stay in their state.
- Texas residents love the Lone Star State. Texas has the highest percentage of residents looking to move within state borders at 91.66%, up from 93.33% from March 2020 to September 2021. Not only is Texas popular among its residents, but its relatively low house prices and lack of a state income tax make it the second most popular destination for out-of-state movers.
- New York and Hawaii have the highest percentage of residents looking to leave. Only 55.25% of New York State movers and 57.17% of Hawaiians want to stay in their state. The high cost of living — exacerbated by persistently high inflation and rising mortgage rates — is likely pushing many residents of these states to consider moving elsewhere. This could help explain why the share of movers seeking to stay in New York State and Hawaii rose from 73.35% and 78.06%, respectively, at the start of the pandemic.
- Many out-of-state movers don’t go far. The most popular new destination state for homebuyers in 24 states bordered the state they were leaving.
- For out-of-state movers, Florida is the #1 destination. Florida is the preferred destination for mortgage buyers in 19 of the 50 states. The Sunshine State has long attracted visitors and new residents, especially retirees, thanks to a combination of factors including the absence of personal income taxes and, of course, its sunny climate. Florida also retains residents with the fifth highest share of movers looking to stay in the state.
States with the highest rate of movers looking to stay in the state
No. 1: Texas
- Percentage of movers remaining in the state: 91.66%
- Percentage of movers who move out of state: 8.34%
- Most popular destination state: Florida
- Percentage of out-of-state movers seeking to move to the most popular destination state: 11.34%
No. 2: Michigan
- Percentage of movers remaining in the state: 89.48%
- Percentage of movers who move out of state: 10.52%
- Most popular destination state: Florida
- Percentage of out-of-state movers seeking to move to the most popular destination state: 20.18%
No. 3: Ohio
- Percentage of movers remaining in the state: 89.38%
- Percentage of movers who move out of state: 10.62%
- Most popular destination state: Florida
- Percentage of out-of-state movers seeking to move to the most popular destination state: 20.18%
States with the highest rate of movers seeking to leave the state
No. 1: New York
- Percentage of movers remaining in the state: 55.25%
- Percentage of movers who move out of state: 44.75%
- Most popular destination state: New Jersey
- Percentage of out-of-state movers seeking to move to the most popular destination state: 21.57%
#2: Hawaii
- Percentage of movers remaining in the state: 57.17%
- Percentage of movers who move out of state: 42.83%
- Most popular destination state: Texas
- Percentage of out-of-state movers seeking to move to the most popular destination state: 14.46%
No. 3: Vermont
- Percentage of movers remaining in the state: 75.50%
- Percentage of movers who move out of state: 24.50%
- Most popular destination state: Florida
- Percentage of out-of-state movers seeking to move to the most popular destination state: 17.52%
When Americans Move, Most Don’t Go Too Far
With the rise of remote work, Americans may have more freedom to buy a home wherever they want, even if that location is far from where they live and work. However, data from LendingTree shows that Americans tend to stay close to the states where they live. And if they change state, they often go to a nearby rather than a cross country one. While the reasons why and where someone chooses to move varies from person to person, there are a few key reasons why most people don’t seem particularly keen on leaving the state.
Although remote work is quite popular, the majority of Americans do not work from home. Therefore, it can often make more sense for movers to stay in the same area so they don’t have to go through the difficulty of finding a new job. Moving a long distance is also considerably more expensive than moving a short distance. Finally, even when a person doesn’t have to worry about their job or the cost of moving, the emotional and social ties they have developed with their current area can be another powerful deterrent to moving away. .
Ultimately, while the search for greener pastures in a new state can be tempting for many, the inconvenience of a long-distance move often makes staying close to home the preferred option for most Americans.
To read the full report, including more data, charts and methodology, Click here.