The Most Popular State To Move To In 2022
As we head into 2023, homebuyers are hoping to avoid the real estate market craziness they dealt with in 2022. Overvalued properties, high mortgage rates, and persistent competition were constant themes everyone who wanted to purchase a residence faced. Still, many buyers moved to different states looking for both affordability and more comfortable weather. "You have people moving from the colder Northeastern and Midwestern states to the warmer Southern and Western states," professor of public policy at the University of California Michael Stoll explained in an interview with Realtor. "That trend has been going on for 30 years and seemed to accelerate during COVID."
Additionally, many of those who moved to Southern and Western states are aged 55 years and older, hailing from larger cities; many relocated as they transitioned to remote work or retired. Bearing all of these trends in mind, many of these folks wound up living in the same state.
Affordability is the driving force
According to U-Haul, Texas is the top state people moved to in 2022. This is the second consecutive year that the Lone Star State been number one in growth in the U.S. — and the fifth time it's received the title since 2016. Redfin notes there are many reasons for this, the main one being that the cost of living in Texas is much more affordable than other locales, lower than the national average by 8%. Also, the median sale price of homes in June 2022 was $42,579 less than the national median sale price. Additionally, many residents also enjoy the fact that Texas has no income tax, which can save those with a salary of $50,000 about $2,000 to $6,000 per year.
U-Haul revealed that the second most popular state people moved to was Florida, which has been listed in the top-three growth state category for seven consecutive years. Just like Texas, Florida also has no income tax, which has attracted residents from New York and New Jersey with income tax rates of 10.9% and 10.75% respectively, per The James Madison Institute. There are also plenty of job opportunities thanks to its vast tourism and aviation industry, and of course, there's plenty of sunshine.