Thursday, July 9, 2009

Domestic Migration

I've been looking at some fascinating statistics on domestic migration between U.S. states (rather than immigration from other countries) for the years 2000-2007. What the stats tell us boils down to three facts:

  1. Americans migrate from colder, cloudier states to warmer, sunnier states.
  2. Americans migrate from more expensive states -- states with higher costs of living and tax and regulatory burdens -- to less expensive states.
  3. American migrate to states with expansive economic development and job opportunities. To a large extent, this is a corollary of (1) and (2) -- once people start migrating into a state, that tends to create jobs and economic development, which then attract more migration, so the process becomes self-fueling.
I am about to move to northern Nevada from northeast Wisconsin after a successful search (finally!) for a teaching job. I don't suppose it's any surprise that the two states from which I had serious inquiries -- Nevada and Arizona -- are by far the two states with the highest rates of domestic in-migration from 2000 to 2007 (2.4% and 1.7%, respectively) as well as the highest rates of overall population growth including immigration (27.1% and 22.7%).

Regionally, the patterns are very clear:

  1. The West is growing except for two very expensive states in rapid population decline -- California and Hawaii -- and one cold state -- Alaska.
  2. The South is growing, but some parts more than others. The Atlantic coast states of North Carolina, South Carolina, and Georgia have been highly attractive. Florida's growth, strong for many years, has been tapering considerably as the cost of living there skyrockets. Louisiana and Mississippi had a period of substantial out-migration owing to hurricanes, but are bouncing back. Texas, with a low cost of living, decent job opportunities, and no personal income tax, has a growing rate of in-migration; Tennessee is also doing quite well.
  3. The Midwest is shrinking, predictably; but perhaps surprisingly, Illinois leads the way -- its recent levels of out-migration are higher than those of Michigan or Ohio. This is probably due to the high cost of living in Chicago, which was a pretty affordable city 20 years ago but is now unenviably rated America's "most overpriced city" by Forbes Magazine. The Midwest really has no strong spots. Even Minnesota, often touted as an economic development success story, had overall out-migration for 2000-2007; it's just too cold there.
  4. The Northeast is troubled because of its ridiculous cost of living. The three states with the highest rates of out-migration from 2000-2007 (leaving special case Louisiana aside) are New York (1.1%), New Jersey (0.7%), and Massachusetts (0.7%). The situation in Connecticut and Rhode Island has been substantially worsening as well.
Since none of the trends underlying these figures yield much to ameliorative effort -- certainly not climate! -- I'm forced to conclude that economic development efforts are largely a waste of time (and I say that as someone who has been substantially involved with them in northeast Wisconsin). You can't market or incentivize your way out of brute facts. People like warm weather, they like sunshine, they like affordability, they like availability of jobs. How can you persuade them otherwise? There is no way.

I notice that my own moves throughout my adult life illustrate all three of the patterns I enumerated:

  1. New Jersey to California, 1985 -- Move to better climate and (at that time) better economic opportunity.
  2. California to Illinois, 1989 -- The Bay Area was getting phenomenally expensive, and Chicago was still affordable. So this was an economy-based move, but I went backwards on climate -- and I have to say, I always regretted it.
  3. Illinois to Wisconsin, 2002 -- Now Chicago was getting phenomenally expensive; Wisconsin was way more affordable (and has remained so).
  4. Wisconsin to Nevada, 2009 -- The trifecta: moving for better economic opportunity, better affordability (since Nevada has no state income tax, and Wisconsin has a high one), and better climate.