Today.
I'm going to let you in on a little bit of a secret about where we're by and why.
So there are three things that I want you to remember about real estate.
Number one, real estate is not the same across the nation.
There is residential, multifamily, commercial office,
self-storage, retail, industrial.
There's all kinds of real estate across the nation,
and it behaves very differently in each location.
Number two, real estate behaves very differently
depending on what's going on in that individual market.
So you have different kinds of real estate behaving very differently
in each market based on what's happening in that market.
Number three, real estate exists for people.
And what do I mean here?
What this means is that I can buy a multifamily building across the country,
but if there's no one to fill it, it's not going to do well.
Same thing with the grocery store.
Same thing with the self-storage people.
Drive real estate values.
And when there's a low supply and a higher demand of people, then values go up.
So for this video, we're going to talk about the 2022 migration
patterns by state.
So this shows where people went and what states were the winners
and what states were the losers.
So all was interesting.
In 2022, there were 26 states that experienced an influx of people
with more people moving in than them moved out,
while 25 states lost movers completely.
So again, real estate exists for people.
So you want to be where these people are moving.
So as you can see from the second chart here, the winners
by far were Florida, Texas, North Carolina and South Carolina.
Florida represents a 1.9% growth, the highest in the history of the state.
What's equated to about 318,000 people.
And as you can see from this chart, the red represents
the outbound, the blue represents the inbound.
And of course, this just is the net difference.
When you look at the United States here
and you see the inbound move rate for 2022, as you can see,
the dark red were where people were moving out in a higher concentration.
You can see that in California and up in New York and Chicago
and where they're moving to in the dark blue, which is primarily
focused in Florida, Texas and the Carolinas.
The big losers for 2022 were California, up 343,000 people
and New York of about 300,000 people for various reasons.
But the important thing to remember is they all move somewhere else.
One other thing to remember is California is still the most
populous state with about 39 million residents still there.
In the prior slide, you saw the domestic net migration by state.
And in the middle slide here, you see the inbound move rate, the 2022.
And this chart here, I want to point out that the blue areas
are where the prices went up the most in the United States.
You can see the progression of the numbers of the people move to the inbound
move rate to 2022 and how it translated into home prices in 2022.
What's interesting to note here still is that all of this happened
while interest rates were going up from March of 2022 through the end of the year.
So as I'm analyzing real estate of where to buy, even in 2023 and 2024,
this is very important as we're taking a look at like a state like Florida.
You can see here that it represents one of the highest price increases
in the entire country as a direct result of the people that are moving there.
You also have to acknowledge that not everyone there is a renter.
Not everyone.
There is a single family home buyer.
Not everyone there is going to put demand on office space,
but most people are going to put demand on things like grocery
stores and retail and potentially even the school system.
The point is that this increased demand
with the existing supply makes prices go up.
And that's the point of the entire video.
As you can see, the areas with the largest inbound move rates are Ocala, Florida.
Tallahassee, Florida,
Charlotte, North Carolina, Savannah, Georgia, and Houston, Texas.
Those are the top five.
The purpose of this video and the point of this video
is that real estate exists for people.
So as these people move into these areas, you focus on the blue areas
and you can see why there are price increases.
The only thing that's going to offset price increases will be new supply,
new supply of schools, new supply of self-storage, new supply
of office, new supply of single-family, new supply of multifamily.
You get the point.
So as you're looking at where to buy your real estate in 2023
or 2024 and beyond, pay attention to the migration patterns.
It is oftentimes a leading indicator for what can happen
and what potentially you might have in that particular submarket.
And last but not least, remember, real estate exists for people.