By examining state-by-state migration trends, it is easy to see which states are enacting pro-growth policies. After all, Americans have shown that they are willing to “vote with their feet” for better economic opportunities even if it means leaving their home state. The top-ten states in the 2017 rankings have gained more than 3.75 million residents in the past decade. The bottom-ten states, meanwhile, have lost more than 3.78 million residents over the same period. In addition to experiencing a mass exodus of residents, states with oppressively high tax rates such as New York, Illinois, and California have lost vast economic opportunities and vast amounts of wealth. Job growth over the last ten years was nearly three times higher in the top ten states than it was in the bottom ten.
We found that some of the most expensive metros had the largest net outflow—the number of local users searching for a home in a different metro minus the number of users from another metro searching for a home in the subject metro. The San Francisco Bay Area topped the list of places with the largest net outflow, followed by New York and Los Angeles.
Rich States, Poor States examines the latest movements in state economic growth. The data ranks the 2017 economic outlook of states using fifteen equally weighted policy variables, including various tax rates, regulatory burdens and labor policies. The ninth edition examines trends over the last few decades that have helped or hurt states’ economies.
Real estate brokerage site Redfin released its annual "migration report" on Monday and found that those residing in San Francisco Metro are the most likely to leave. The catalyst for moving – high housing costs – should surprise no one.
Analyzing a sample of 1 million Redfin users, the site found that 19.4 percent of potential homebuyers in San Francisco searched outside of the region for houses.
San Francisco also recorded the highest ""net outflow"" – the number of potential homebuyers looking to move to San Francisco Metro subtracted from the number of those who want to leave. The region's outflow was double that of New York.
The labor market continued to tighten, and wage pressures picked up further. Contacts reported record-high demand, as well as wage increases, for engineers with experience in cloud computing. Contacts also noted that technology and non-technology sectors are increasingly competing for workers with the same advanced skills. In the financial services sector, wages for unskilled entry-level positions increased markedly. Labor shortages in the construction industry persisted, driving up wages for skilled workers. Demand for labor in the agriculture industry continued to outpace supply, putting upward pressure on wages. One contact noted that growers continue to automate production where possible. Contacts in the pharmaceutical manufacturing industry reported relocating workers and operations to lower-cost locales outside of the District.