A southern migration has been steadily unfolding across the U.S., driven by the search for more relaxed housing markets. 

In 2023, 46% of net interstate migration flowed into the South, with another 25% heading west, according to StorageCafe’s new migration study based on the latest U.S. Census data.  

The study also explores what the net migration winners have to offer to recent transplants, examines the migration hotspots with the highest per capita rates and analyzes generational shifts.

“Interstate and regional migration are undergoing significant shifts, driven by the pursuit of affordability and better living conditions," says Emilia Man, the lead analyst behind the study. "Residents are increasingly relocating to areas with lower housing costs and less competition, often where active construction meets demand, offering diverse housing options for both buyers and renters."

Here are some of the study's most interesting key findings:

Who is migrating?

• Broken down by generations, Gen Z and Millennials are now tied as the primary moving demographics, each accounting for nearly 30% of all state-to-state relocations in 2023.

Which states are residents leaving?

• Zoomers are bidding adieu to high-cost lifestyles in California, Illinois, New Jersey, and New York.

Which states are seeing an influx of new residents?

• Zoomers are saying hello to opportunity in South Carolina, Arizona, and Colorado. These states have become prime net migration winners for Gen Z, attracting young movers with vibrant job markets, more affordable housing, and access to outdoor lifestyles—all of which align with Gen Z’s priorities for financial independence and an optimal work-life balance.

• Housing affordability is shaping migration trends. Home prices in nine of the top 10 states attracting new residents are 9% to 59% lower than those in their primary source states — an important factor, as nearly four in 10 movers achieve homeownership within a year of relocating. 

• The top states gaining residents — Texas, Florida, the Carolinas and Georgia — welcomed a combined net influx of over 500,000 people in 2023. California and New York, while still leading in departures, saw slower outflows compared to previous years.

  • Millennials, who prioritize family-friendly environments and career growth, favor Texas, North Carolina, and Florida, likely drawn by economic stability and homeownership opportunities.

  • Southern states continue to dominate net migration trends, with Texas surpassing Florida as the top destination for the first time in a decade—gaining over 137,000 residents.

  

• Indiana and Tennessee, known for their rural charm, are becoming Gen Z migration hotspots. 

  • Indiana gained about 12,000 Gen Z movers, matching New York’s net loss, while Tennessee attracted roughly 10,000 during the same period. These areas offer more affordable housing and lower taxes than many coastal states. Additionally, they provide a strong sense of community, a balanced lifestyle, and easy access to nature—qualities that appeal to Gen Z’s desire for financial independence and sustainability.

• While Gen Z is drawn to states like the Carolinas, Indiana and North Dakota for their laid-back lifestyles, they’re also heading to job hubs like Washington, D.C., and Colorado. 

• In per capita terms, smaller states like the Carolinas and North Dakota feel the effects of domestic migration more intensely. North Carolina, for example, welcomed over 13 newcomers per 1,000 residents, fueling a 10% home price increase over the past year. Over the past five years prices have increased by 60%. 

• As remote work continues to reshape the workforce, it is increasingly contributing to interstate migration, with 20% of long-distance movers working remotely — significantly higher than the 14% of the general population. Top destinations for remote workers include Connecticut, Colorado, Vermont and Maine alongside Washington, D.C.

"Within booming metro areas, there’s a growing trend of moves from core cities to fast-growing outer suburbs," explains Man. "These areas offer more space, attainable pricing and vibrant communities while keeping residents connected to the economic opportunities of larger metros. These trends are reshaping housing markets and driving the evolution of cities and suburbs to better serve their growing populations.”