US Relocation Rates Plummet by Half as Americans Choose Local Moves
The familiar sound of moving trucks has become significantly quieter across American neighbourhoods over the past five years. According to a comprehensive new migration study from Bank of America, the number of Americans choosing to relocate has dropped by more than 50% since 2021. This dramatic decline represents a fundamental shift in how and why people are moving within the United States.
A Shift from National to Regional Relocation
The study highlights a crucial trend: while fewer Americans are packing up each year, those who do move are overwhelmingly choosing to stay within their home region. The big story isn't a national reshuffle - it's people trading one nearby city for another that fits their budget and lifestyle a little better, the research noted. This represents a significant departure from previous patterns of cross-country migration.
Bank of America's analysis reveals that people are increasingly swapping state-to-state moves for city-to-city transitions within regions, with financial considerations playing a major role in these decisions. Fewer Americans are packing up each year, yet when they do move, they overwhelmingly stay in their home region, the study emphasised.
Understanding the Decline in Mobility
While the Bank of America study didn't specifically address the reasons behind the 50% drop in relocation rates, it referenced previous research from the Federal Reserve Bank of Richmond. That report suggested multiple factors are contributing to this significant slowdown in American mobility.
Some of the explanations for the decline in mobility involve long-term trends - such as population aging or increased earnings opportunities for women - that make moving costlier, the Federal Reserve study indicated. Others appeal to changes in the geographic distribution of earnings, urban amenities and housing prices, all of which make moving less rewarding.
Midwest Emerges as Relocation Hotspot
For those Americans who are choosing to relocate, the Midwest has become a particularly attractive destination. During the last three months of 2025, several Midwestern cities saw substantial population increases:
- Indianapolis
- Columbus, Ohio
- Denver
- Austin
- Cleveland
Conversely, several major coastal cities experienced significant population losses over the same period:
- Miami
- Los Angeles
- Washington D.C.
- San Jose
- Boston
Austin Exemplifies the Local Move Trend
The Texas capital of Austin perfectly illustrates the national trend toward regional rather than cross-country relocation. Remarkably, a quarter of Austin's new residents came from other major Texas cities - primarily Houston, Dallas, and San Antonio.
In our view, Austin is likely a target locale for people looking for a growing city that retains a small town feel with comparatively less expensive housing, the Bank of America study observed. This pattern demonstrates how Americans are prioritising affordability and quality of life within familiar regions.
Coastal Hubs Experience Population Shifts
Further west, Los Angeles continues to see residents departing despite its cultural appeal. The West Coast hub experienced a 0.8% year-on-year decline in net population. Most of those leaving Los Angeles moved to other California metropolitan areas, with San Francisco and San Jose attracting 6% of LA's outbound migration, and San Diego drawing 5%.
On the opposite coast, New York City saw a 0.5% year-on-year decrease in residents. Interestingly, rather than moving to other parts of New York state, former Big Apple residents are converging on Philadelphia and southern cities. Approximately 7% of New York's outgoing residents relocated to nearby Philadelphia, while another 7% moved to Miami, with 3% each choosing Washington D.C. and Atlanta.
This comprehensive analysis reveals a fundamental restructuring of American migration patterns, with financial considerations, regional preferences, and lifestyle factors increasingly determining where and how people choose to relocate within the United States.
