A recent report published by Bank of America is making a good case for the bright future of southern US states.
The report examined economic trends in different regions in the US and found that while population growth is slowing down in some areas, many Americans are choosing to relocate to southern cities like Houston, Dallas, Miami, and Nashville.
Southern Swell
The Bank of America report published in December found that the South, a region that encompasses 16 states and 129 million people, is responsible for nearly half the population growth of the United States since 1960.
The report cites inward migration and a higher birth rate as reasons for the South’s population boom.
Economy in the South Is Growing
Economic growth is highly correlated with population growth. The report cites data from the Bureau of Economic Analysis which shows that the South’s economy outgrew the US economy between 2017 and 2022.
Economic performance indicators like consumer spending in the South are strong and the report asserts that the labor market is “arguably in the best shape of any US region.”
Southern State’s Population Growth
Southern states account for 39% of the population living in the United States, which is nearly the same amount that lives in all of America’s cities. (via Census Bureau)
Census data from 1960 onwards shows that the population in southern states has grown by over 73 million people. Many people are deciding to move south, with southern metropolitan areas seeing a lot of growth.
GDP in the Southern States
While many people think of states like California and New York as major economic drivers in the US, southern states are starting to snag an increasing share of GDP.
According to the Bank of America report, the state of Texas accounts for nearly 10% of the US GDP, with Florida following close behind with their economy accounting for nearly 6% of GDP.
Migration from Other States
Americans are moving to southern states like Texas and Florida more than ever before. Business Insider reported that between 2021 and 2022, nearly 740,000 people moved to Florida and 670,000 people moved to Texas.
Some experts are calling the flight of Americans to southern states a great migration because of how quickly it has happened and how many people are moving.
Why Are People Moving South?
There are several motivating factors that inspire people to move to these states. Southern states tend to have a lower standard of living than other states, meaning it is more affordable to reside there.
Recent economic struggles like high inflation and the consequences of the COVID-19 pandemic have left many Americans struggling and looking for ways to make ends meet.
People Tend to Stick Around
Population in the south is swelling not just from migration from other states, but because there is something that keeps people there.
According to a Dallas Fed analysis, 82 percent of people born in Texas were still residing in the state as of 2021. This rate in Texas was the highest in the country, with North Carolina and Georgia also posting high numbers and ranking in the top states.
Businesses Following Suit
It’s not just people who are migrating to southern states; large companies are also on the move. According to Southwest Tribune, huge companies like Apple, Tesla, Boeing, and Hewlett Packard Enterprise are building up operations or moving their headquarters to states like Texas.
Thanks to these companies relocating and creating new jobs, Texas, South Carolina, and North Carolina have become the three fastest-growing states. (via Business Insider)
The South Is Home to Immigrants
Another factor boosting the population in southern states is the amount of immigrants from other countries that are living there.
According to the Pew Research Center, southern states like Texas and Florida are the biggest homes to immigrants. 45 percent of the immigrants living in the United States live in either Texas, Florida, or California.
Birth Rates in the US
Birth rates have stagnated in the United States, and natural-born US citizens are getting older. According to The Hill, the number of teenagers and children is decreasing because people are having fewer kids, and fewer women are at the right age for child-bearing.
The immigrant population is helping Texas and Florida buck this trend, as these states have seen their under-20 populations grow. In fact, 62 percent of child and teen population growth in the United States is from Texas and Florida.
What’s in Store for the South
As jobs move to southern states, it’s no surprise that people will move to follow. These southern states are driving population growth for younger people. Younger people are essential for a healthy economy because they have fewer debilitating health problems and are capable of a wider range of work.
However, southern residents should be careful of this sudden shift of people moving to their region. More people moving in could strain the supply of houses, increasing the cost of buying a home and the cost of living that makes the region so attractive to many.
