What if the secret to discovering the next hot real estate market is hiding in plain sight?
Each year, U-Haul releases its Growth Index, tracking where people are moving to and from across the United States. U-Haul is a well-known American company specializing in rental trucks, trailers, and storage units, often used for moving and transportation services.
U-Haul’s data provides a foundation for real estate investors looking to spot growing states. By applying actionable insights to U-Haul's report, you can pinpoint your next U.S. real estate market– isn’t that awesome?
The U-Haul Growth Index is an annual report that tracks migration patterns of over 2.5 million U-Haul customers across the United States. It measures the net gain or loss of movers in each state by comparing the difference between the number of people moving into a state (arrivals) versus the number leaving it (departures).
Migration trends are important for real estate investing because they show where housing demand is growing. Population growth is often driven by factors like increased job opportunities, lower costs of living, better weather, or a combination of these. Understanding these trends helps investors pinpoint markets with strong potential.
In areas with rising demand, two things usually happen. First, with fewer houses available than there are people, existing properties can be sold for higher prices or rented out at higher rates. Second, as more people move in, the demand for housing grows. This creates opportunities for investors to build, renovate, or buy existing properties and turn them into rentals. Explore loan options in your U.S. market.
U-Haul’s report identifies the states with the most migration, giving us a snapshot of where people are moving. However, it doesn’t always explain the reasons behind these trends. In this section, we’ll break down U-Haul’s top five growth states and explore the factors that are likely driving population increases.
South Carolina is seeing strong population growth due to its expanding economy and affordable cost of living. With a median home price lower than the national average and relatively low taxes, many people are moving away from states like New York and Massachusetts to enjoy these benefits in South Carolina. The state’s GDP is also growing. Driven by key industries like manufacturing and tourism. Major employers like Boeing and BMW boost job demand, while year-round tourism creates additional job opportunities, further driving housing demand.
Over the past several years, Texas has consistently ranked as one of the top destinations for movers in the U-Haul reports. It offers an enormous, diverse economy with industries ranging from energy and technology to manufacturing. Texas’ business-friendly laws have also led major companies such as Apple and Tesla to bring a larger presence to the state, bringing with it employees from around the country. Individuals are attracted to Texas by its low cost of living and no state income tax.
Explore the top cities in Texas for real estate investors.
North Carolina is a growing hotspot for Americans. The state's economy is thriving, supported by key sectors like technology, education, and finance. Property prices, home insurance, and overall cost of living are still significantly lower than other coastal states such as California and New York, attracting retirees and young professionals alike.
These North Carolina cities are booming.
People from around the world know Florida as one of the top vacation destinations in the United States. Over the past few decades, the state has become far more than just a tourism hub. Many American companies and individuals are making Florida their permanent residence. It has attractive weather, emerging tech hubs like Miami and Tampa, and no state income tax. This combined with affordable housing options makes Florida an attractive place to call home.
Popular destinations for Florida real estate investors.
Another southern state rounds out the top five:Tennessee. Much like Texas, this state has no state income tax and offers a favorable business environment for employers. The state’s economy and employment is driven by sectors like healthcare, manufacturing, and education. It also has a strong tourism industry, anchored by the Nashville music scene and Smoky Mountains. With a growing economy and affordable housing, it’s no wonder many are moving to Tennessee.
The U-Haul Growth Index is a great starting point towards selecting your real estate investment market. Now that you know which states are growing as well as possible explanations as to why, it’s important to conduct your own due diligence.
With this report as your first step in narrowing potential locations, it’s time to look at states and cities on a deeper level. Here are some helpful tips to dive deeper into a state and its local markets before you make your investment.
In the United States, each state offers unique opportunities and challenges for real estate investors. Below are key things to consider when evaluating potential states for your next real estate purchase.
Apply for a rental property loan.
When researching local markets, it's important to consider a variety of factors that can affect both the desirability and profitability of the area. Below are key things to look at when evaluating different areas.
Have a rental property in mind? Get a mortgage quote today.
The U-Haul Growth States Report is a great tool to help you focus on growing real estate markets. Knowing how to use this report along with other data points will help you select the right market for your investment strategy.
Once you’ve pinpointed the right state, the next step is to explore mortgage options to finance your investments in these growing markets.
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