Top 7 States with the Highest & Lowest Net Migration in 2024: Insights for Passive Multifamily Investors
Ellie Perlman
Founder and CEO @ Blue Lake Capital | Multifamily Investment Opportunities
Understanding migration trends is crucial for passive multifamily investors aiming to optimize returns. States experiencing high net in-migration often see increased housing demand, leading to potential rental income growth and property appreciation. Conversely, states with significant out-migration may face challenges in maintaining occupancy rates and rental yields. Based on recent data from moving trends in 2024, here are the top seven states with the highest and lowest net migration rates, their average apartment rents, and the major cities experiencing strong migration trends:
States with the Highest Net Migration in 2024
In-to-Out Ratio: 2.10
Average Rent: $1,065/month
Major Cities with Strong Migration Trends: Charleston, Greenville, Myrtle Beach
Investment Insight: South Carolina continues to attract new residents, maintaining an in-to-out move ratio of 2.10. This sustained influx suggests robust demand for rental properties, particularly in cities like Charleston and Greenville. Investors can anticipate stable occupancy rates and potential for rental growth in these areas.
In-to-Out Ratio: 1.73
Average Rent: $1,093/month
Major Cities with Strong Migration Trends: Charlotte, Raleigh, Asheville
Investment Insight: North Carolina has emerged as a top destination, with a significant net volume of searches for moves in. Cities such as Charlotte and Raleigh are experiencing population growth, driven by strong job markets and quality of life. This trend indicates promising opportunities for multifamily investments, with expected high demand for rental units.
In-to-Out Ratio: 1.66
Average Rent: $933/month
Major Cities with Strong Migration Trends: Cheyenne, Casper, Laramie
Investment Insight: Wyoming's appeal lies in its low population density and natural landscapes, attracting individuals seeking a quieter lifestyle. The state's increasing in-migration suggests growing demand for housing, presenting opportunities for investors in emerging rental markets.
In-to-Out Ratio: 1.63
Average Rent: $918/month
Major Cities with Strong Migration Trends: Little Rock, Fayetteville, Bentonville
Investment Insight: Arkansas has seen a significant rise in move-in rates, with an in-to-out ratio of 1.63. This growth indicates a strengthening rental market, particularly in cities like Little Rock and Fayetteville, offering potential for favorable investment returns.
In-to-Out Ratio: 1.60
Average Rent: $1,603/month
Major Cities with Strong Migration Trends: Portland, Bangor, Lewiston
Investment Insight: Maine's net migration gain reflects its appeal for outdoor recreation and retirement living. The state's growing population suggests increased demand for multifamily housing, especially in areas like Portland and Bangor.
In-to-Out Ratio: 1.60
Average Rent: $1,340/month
Major Cities with Strong Migration Trends: Nashville, Knoxville, Chattanooga
Investment Insight: Tennessee continues to attract new residents, maintaining a strong in-to-out move ratio. Cities such as Nashville and Knoxville are experiencing population growth, driven by economic opportunities and cultural attractions. This trend indicates promising opportunities for multifamily investments, with expected high demand for rental units.
In-to-Out Ratio: 1.55
Average Rent: $1,343/month
Major Cities with Strong Migration Trends: Boise, Meridian, Idaho Falls
Investment Insight: Idaho's natural beauty and lower cost of living have made it a popular destination for movers. The state's increasing in-migration suggests growing demand for housing, presenting opportunities for investors in emerging rental markets.
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States with the Lowest Net Migration in 2024
In-to-Out Ratio: 0.47
Average Rent: $2,151/month
Major Cities with Strong Out-Migration Trends: Los Angeles, San Francisco, San Diego
Investment Insight: California continues to experience a net outflow of residents, driven by high living costs and housing prices. Investors should exercise caution, as reduced demand may impact rental occupancy and growth potential.
In-to-Out Ratio: 0.63
Average Rent: $1,757/month
Major Cities with Strong Out-Migration Trends: Providence, Warwick, Cranston
Investment Insight: Rhode Island’s out-migration trend is influenced by economic factors and housing costs. Local market conditions should be thoroughly assessed before committing to multifamily investments.
In-to-Out Ratio: 0.64
Average Rent: $2,019/month
Major Cities with Strong Out-Migration Trends: Newark, Jersey City, Paterson
Investment Insight: High property taxes and cost of living are key factors behind New Jersey’s out-migration. Investors may face challenges with occupancy rates and rental stability.
In-to-Out Ratio: 0.71
Average Rent: $1,803/month
Major Cities with Strong Out-Migration Trends: Bridgeport, New Haven, Hartford
Investment Insight: Connecticut’s net outflow is impacted by economic factors. Investors should conduct market analyses to identify viable opportunities in select areas.
In-to-Out Ratio: 0.79
Average Rent: $1,588/month
Major Cities with Strong Out-Migration Trends: Chicago, Aurora, Naperville
Investment Insight: Illinois’s out-migration is influenced by high taxes and economic challenges, affecting demand for rentals. Considerations include possible property undervaluations in some areas.
In-to-Out Ratio: 0.80
Average Rent: $2,617/month
Major Cities with Strong Out-Migration Trends: New York City, Buffalo, Rochester
Investment Insight: New York has seen a net outflow due to high living costs. Investors should focus on resilient submarkets or explore emerging nearby areas with steady demand.
In-to-Out Ratio: 0.85
Average Rent: $2,487/month
Major Cities with Strong Out-Migration Trends: Boston, Worcester, Springfield
Investment Insight: Massachusetts’s high housing prices have driven a steady out-migration. Investors should assess markets carefully and consider properties in well-connected suburban areas.
Final Thoughts
Migration trends offer valuable insights into the evolving demand for rental housing, directly impacting passive multifamily investors. States with high net in-migration, such as North Carolina and Tennessee, provide promising opportunities with potential for higher occupancy rates, rent growth, and property appreciation. Conversely, states facing net out-migration, like California and New York, may pose challenges but could also present unique value-add opportunities in select markets. As always, a balanced approach to market selection and diversification across regions can help mitigate risks and maximize returns. By staying informed on these trends, investors can make strategic decisions that align with long-term wealth-building goals in the multifamily sector.
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3moThanks Ellie for sharing this , this is great insight .