Top 7 States with the Highest & Lowest Net Migration in 2024: Insights for Passive Multifamily Investors

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

1. South Carolina

   1. In-to-Out Ratio: 2.10

   2. Average Rent: $1,065/month

   3. Major Cities with Strong Migration Trends: Charleston, Greenville, Myrtle Beach

   4. 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.

2. North Carolina

   1. In-to-Out Ratio: 1.73

   2. Average Rent: $1,093/month

   3. Major Cities with Strong Migration Trends: Charlotte, Raleigh, Asheville2. Real Estate as an Inflation Hedge

   4. 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.

3. Wyoming

   1. In-to-Out Ratio: 1.66

   2. Average Rent: $933/month

   3. Major Cities with Strong Migration Trends: Cheyenne, Casper, Laramie

   4. 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.3. Appreciation Builds Long-Term Equity

4. Arkansas

   1. In-to-Out Ratio: 1.63

   2. Average Rent: $918/month

   3. Major Cities with Strong Migration Trends: Little Rock, Fayetteville, Bentonville

   4. 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.

5. Maine

   1. In-to-Out Ratio: 1.60

   2. Average Rent: $1,603/month

   3. Major Cities with Strong Migration Trends: Portland, Bangor, Lewiston

   4. 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.

6. Tennessee

   1. In-to-Out Ratio: 1.60

   2. Average Rent: $1,340/month

   3. Major Cities with Strong Migration Trends: Nashville, Knoxville, Chattanooga

   4. 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.

7. Idaho

   1. In-to-Out Ratio: 1.55

   2. Average Rent: $1,340/month

   3. Major Cities with Strong Migration Trends: Boise, Meridian, Idaho Falls

   4. 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.

States with the Lowest Net Migration in 2024

1. California

   1. In-to-Out Ratio: 0.47

   2. Average Rent: $2,151/month

   3. Major Cities with Strong Out-Migration Trends: Los Angeles, San Francisco, San Diego

   4. 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.

2. Rhode Island

   1. In-to-Out Ratio: 0.63

   2. Average Rent: $1,757/month

   3. Major Cities with Strong Out-Migration Trends: Providence, Warwick, Cranston

   4. 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.

3. New Jersey

   1. In-to-Out Ratio: 0.64

   2. Average Rent: $2,019/month

   3. Major Cities with Strong Out-Migration Trends: Newark, Jersey City, Paterson

   4. 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.

4. Connecticut

   1. In-to-Out Ratio: 0.71

   2. Average Rent: $1,803/month

   3. Major Cities with Strong Out-Migration Trends: Bridgeport, New Haven, Hartford

   4. Investment Insight: Connecticut’s net outflow is impacted by economic factors. Investors should conduct market analyses to identify viable opportunities in select areas.

5. Illinois

   1. In-to-Out Ratio: 0.79

   2. Average Rent: $1,588/month

   3. Major Cities with Strong Out-Migration Trends: Chicago, Aurora, Naperville

   4. 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.

6. New York

   1. In-to-Out Ratio: 0.80

   2. Average Rent: $2,617/month

   3. Major Cities with Strong Out-Migration Trends: New York City, Buffalo, Rochester

   4. 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. 

7. Massachusetts

   1. In-to-Out Ratio: 0.85

   2. Average Rent: $2,487/month

   3. Major Cities with Strong Out-Migration Trends: Boston, Worcester, Springfield

   4. 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.

   
   

P.S. If one of your priorities, like mine, is building and preserving your wealth through multifamily real estate investments, click here to download my new eBook: The Ultimate Guide to Creating & Preserving Your Wealth.

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About Ellie Perlman

Ellie Perlman is the founder of Blue Lake Capital, a commercial real estate investment firm specializing in multifamily investing throughout the United States. At Blue Lake Capital, Ellie partners with both institutional and individual investors to grow their wealth by achieving double-digit returns by investing alongside her in exclusive multifamily deals they usually don't have access to.

A defining factor of Blue Lake Capital’s strategy is founded in utilizing machine learning/artificial intelligence throughout the course of all acquisitions and asset management. This advanced technology enables the company to produce accurate and data-driven forecasting for all assets on a market, property, and even tenant basis. In doing so, Blue Lake is able to lead commercial investments with the full capabilities of today’s technology.

Ellie is the founding host of REady2Scale, a podcast that highlights the assets, processes, and strategies for the multiple approaches to successful real estate investing.

She started her career as a commercial real estate lawyer, leading real estate transactions for one of Israel’s leading development companies. Later, as a property manager for Israel’s largest energy company, she oversaw properties worth over $100MM. Additionally, Ellie is an experienced entrepreneur who helped build and scale companies by improving their business operations.

Ellie holds a Masters in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.

You can read more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.

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