There are many reasons why people decide to move. Migration patterns demonstrate how affordability, economic opportunity, and lifestyle choices influence population shifts nationwide. Virginia continues to be a significant destination for in-migration, which serves as a crucial indicator of people relocating to more affordable areas across the United States. The Internal Revenue Service (IRS) recently published data showing a clear picture of people moving between states, based on address changes reported on tax returns between 2022 and 2023.

Residents From Higher-Cost States Continue to View Virginia as an Attractive State

One of the clearest trends in the data is that the Commonwealth continues to attract plenty of residents from higher-cost states such as Maryland, California, and New York. For many households, Virginia provides a good balance of economic opportunities and affordability, especially compared to some of the country’s most expensive markets. Northern Virginia continues to benefit from employment in the federal government, defense contracting, healthcare, and technology sectors, attracting workers looking for career opportunities.

Inbound migration has also driven up activity in other areas, not just Northern Virginia, as people are being drawn to other parts of the state that offer lower housing costs and more space compared to denser markets in neighboring states.

The map below highlights how much of Virginia’s inbound movement remains concentrated in states along the East Coast, particularly in states with elevated home prices.

The Trend of Outflow Migration is Shifting Towards States with Lower Costs

While Virginia still attracts residents from various states, it is also seeing a significant number of people leaving, mainly heading to southern states. The most popular destinations for Virginians are North Carolina, Florida, Maryland, Texas, and California. North Carolina appeals to those leaving Virginia due to its affordable housing, expanding jobs, and proximity to friends and family. Some of these states offer lower taxes, warmer climates, and growing job markets that attract current Virginia residents.

The map below illustrates the total outbound migration from Virginia to other states, emphasizing how southern states attract residents away from the Commonwealth.

In fact, when we look at net migration, Virginia has seen more residents leaving for southern states than moving in from those states. The largest net out-migration was observed with Florida (-4,267 residents), North Carolina (-3,907 residents), and Texas (-3,030 residents) between 2022 and 2023.

Migration Trends Mirror Economic and Housing Pressures

Migration flows play an important role in shaping housing demand, inventory pressures, and economic growth across the state. Areas with higher inbound migration often see increased demand for rental and owner-occupied housing and workforce growth, while regions experiencing outbound migration may face the opposite effects over time. For REALTORS® in Virginia, analyzing these migration patterns offers important insights into the housing demand in their local market.

Based on our recent monthly survey, 15% of REALTORS® indicated that their most recent client sold their home because they were moving out of state. As affordability continues to reshape where Americans choose to live, interstate migration patterns will continue to be a key indicator for housing and economic trends in Virginia and across the country.

For more information on housing, demographic and economic trends in Virginia, be sure to check out Virginia REALTORS® other Economic Insights blogs and our Data page.