Allied Van Line just made it official in their latest "Magnet States" migration report. Tucson was the top magnet city that people moved to in 2022. And Arizona was the top inbound state to which people moved.
Runner-up states were South Carolina, North Carolina, Tennessee, and Texas as the top relocation destination states. Sarasota, FL, and Charlotte, NC were the two runner-up destination cities.
And it probably did not surprise anyone that the top outbound states were Illinois, California, and New Jersey. These are all high-tax rate states.
Here is the poster that Allied published to highlight these moves:
As a result, Illinois, Michigan, Pennsylvania, California, and New Jersey were the most exited states in 2022.
Moreover, Allied says that housing prices the most in moved to states. That actually may make them less attractive in 2023 according to Allied Van Lines.
This report also coincides with net migration data from the U.S. Census. The 2022 report (for the period ending June 2022) has not yet been released. But prior year's data shows that Florida, Texas, and Arizona were the top three states with inbound net migration per 1,000 people.
However, some U.S. cities are now struggling with massive migrant moves into their populations.
For example, The Wall Street Journal recently wrote about how Denver has experienced a wave of asylum-seeking migrants that the Biden Administration let into the country at the southern border. Colorado is far from the Mexico border, but this has not stopped the DHS from relocating waves of people by busing them or even flying them around the country.
In addition, the surge of illegal crossings is changing the migration data. For example, in December 42,000 people entered the U.S. in El Paso, according to government data, compared with 19,470 for all of last December, as the WSJ reported.
This also likely accounts for a large number of people entering both Texas and Arizona. However, the Allied Van Lines survey was based on data from people moving from one state to another.
The bottom line here is that the southern part of the U.S. is very attractive to many U.S. families who are moving out of northern, high-tax states.
Mark R. Hake, CFA, writes articles on national and local news movies, stocks, and market events at InvestorPlace.com, Barchart.com, Medium.com, and Newsbreak.com as well as TalkMarkets.
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