Edited by: TJVNews.com
New Jersey continues to experience a significant exodus for the sixth consecutive year, surpassing all other states in the United States, according to the latest data from interstate moving company United Van Lines. As was reported in the New York Post, the findings, published in the 47th annual National Movers Study, shed light on the factors driving residents away from the Garden State, with a particular focus on the high outbound rates, top metropolitan areas affected, and the demographics of those making the move.
United Van Lines’ study revealed a staggering 65% outbound rate for New Jersey, marking the state with the highest migration outflows for the sixth year in a row. According to the report in the Post, this rate was approximately four percentage points higher than the second-ranked state, Illinois. New York also suffered a substantial exodus, with a 60% outbound rate, attributed in part to losses on Wall Street, corporate headquarters relocation, rising crime rates, stiff taxes, and an increasingly exorbitant cost of living.
The top metropolitan areas in the country experiencing the most outbound moves, according to United Van Lines, were also concentrated in New Jersey. The information in the Post reported indicated that the Bergen-Passaic region, the most populated in the state, recorded a staggering 77% outbound rate, followed by Monmouth and Ocean counties, situated in the heart of the Jersey Shore, with a 71% outbound rate in 2023.
An intriguing aspect of the study was the demographic profile of residents moving out of New Jersey. The majority of outbound movers were of retirement age, at least 62 years old, according to United Van Lines. As mentioned in the Post report, the data revealed that 32% of the company’s outbound moves from New Jersey were directed towards Florida, North Carolina, and South Carolina.
United Van Lines spokesperson Eily Cummings highlighted that it is challenging to pinpoint the exact factors driving retirement migration but suggested a correlation with property taxes and warmer climates, the Post reported. New Jersey boasts the highest property taxes in the United States, with an average effective property tax rate of 2.49%, compared to the national average of 0.99%. The cost of living in New York, a neighboring state facing its own migration challenges, is reportedly 30% higher than the national average, while New Jersey’s expenses are 13% above the national average, the report in the Post added.
Traditionally, job-related factors were the primary motivators, but the advent of remote work during the COVID-19 pandemic has introduced more nuanced considerations. The Post report said that Cummings noted that remote work has allowed individuals to prioritize being closer to family or opting for a lifestyle change, contributing to a more diverse set of motivations for relocation.
The data revealed that 21.4% of New Jersey residents chose to move to be closer to family, showcasing a remarkable shift in priorities since the onset of the pandemic. Approximately 14% sought a better lifestyle, while 16.4% moved due to job-related reasons, as was noted in the Post report. These figures underscore the multifaceted nature of the current migration trends, reflecting a departure from the traditional dominance of employment as the primary driver.
While the exact number of residents who moved out of New Jersey in 2023 remains unclear, Cummings clarified that United Van Lines tracks migration patterns based on percentages to provide a more accurate comparison, the Post said. In contrast, large states, by sheer size, would naturally have larger traffic.
The study also shed light on states experiencing an influx of residents. Vermont, Washington, D.C., and South Carolina emerged as the top destinations with inbound rates of 65.5%, 63.3%, and 63.2%, respectively, as was reported by the Post. These states appear to be attracting individuals seeking a change in lifestyle, family proximity, or perhaps more favorable economic conditions.
The broader real estate sector is witnessing challenges, with Americans grappling with soaring interest rates over the past year. In New York, an astonishing 68% of high-earning homebuyers opted to pay cash for homes in the fourth quarter of 2023. The Post report also indicated that this figure, typically around 50%, signifies a record-high market share, as deep-pocketed buyers with significant liquid assets choose to bypass high-interest rates altogether.
. As individuals continue to reassess their priorities in the wake of the pandemic, policymakers and real estate professionals alike will need to adapt to these shifting dynamics to understand and address the changing needs of the population.
