Florida gained a net total of 126,000 residents from other states in 2023, according to the Florida Chamber Foundation's latest State-to-State Population Migration Report. This figure confirms Florida as a leading destination for new residents but also indicates a nearly 50% decrease from the previous year, marking the first significant decline in net migration in ten years. The report attributes this change to rising housing costs and perceived limited career opportunities for younger workers.
The report highlights that Florida led the nation with a net income migration of nearly $36.1 billion annually, more than three times that of Texas, which ranks second. However, Florida experienced resident outflow to 19 states in 2023. While there was an influx of residents aged 60 and older, younger residents aged 20-29 are leaving due to high housing costs and limited job opportunities.
Housing affordability is identified as the primary reason for outmigration, with residents moving to states like Tennessee and North Carolina for more affordable living options. The Florida Chamber-backed Live Local Act and the Florida 2030 Blueprint aim to address these challenges.
The migration trends present an important moment for Florida’s business community. The Florida Chamber Foundation stresses understanding who is leaving and why, aiming to retain Florida’s workforce as part of building a large economy by 2030.
Outmigration among young adults is concerning since U.S. News & World Report ranks Florida top in higher education and first in four-year college affordability. Yet, retaining graduates seems challenging due to unclear pathways connecting education with employment within the state. The Future of Work Florida initiative seeks to bridge this gap between education and workforce opportunities.
Mark Wilson, President of the Florida Chamber of Commerce & Foundation said: “Businesses must play an increasingly active role in developing and retaining Florida’s talent pipeline.” He added that while job opportunities are crucial, affordable housing is equally important: “If our younger workforce can’t afford to live here, they will start looking elsewhere.”
To combat rising housing costs contributing to outmigration, initiatives like the Live Local Act aim to expand affordable housing options. The goals outlined in the Florida 2030 Blueprint include reducing housing-cost-burdened households below 10% and ensuring diverse attainable housing options essential for community stability.
Despite recent trends, "Florida continues to be a top choice for new residents," concludes the report. It emphasizes reinforcing "Florida’s brand as the best place to live, work, raise a family," with support from local businesses ensuring competitiveness and resilience.
The report notes that another forecast on economic shifts will be released at the virtual Florida Economic Outlook & Jobs Solution Summit on January 30, 2025.
For further information about this research or localized outlooks contact Keith Richard at krichard@flchamber.com.