Market insights
January 28, 2025
7
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Find Emerging Real Estate Markets in 2025 with the U-Haul Growth States Report

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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?

Key takeaways

  • U-Haul Growth Index helps identify emerging markets. The report tracks migration trends, showing which states are experiencing population growth, signaling higher housing demand and investment opportunities.

  • Many Americans are moving to southern states with warmer climates, job opportunities, and lower costs of living.
  • Understand local market dynamics to make your decision. Once you've identified growing states, it's crucial to research factors like job markets, taxes, and landlord-renter laws to understand how these elements will affect your investment strategy.

What is the U-Haul Growth Index and what does it measure?

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).

Why do migration trends matter?

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.

Breaking down U-Haul’s top 5 growth states

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.

1. South Carolina

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.

2. Texas

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.

3. North Carolina

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.

4. Florida

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.

5. Tennessee 

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.

How to use U-Haul data to choose your investment market

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.

Researching states

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.

  • Employment: Each state has publicly available employment and economic data. States with low unemployment rates usually have renters who can pay their rent on time, helping you maintain steady cash flow. Look for states with strong job markets and a blend of different industries like healthcare, education, and tech.

  • Landlord versus renter friendly: Some states have laws that make it easier to be a landlord, like quicker evictions and fewer rent controls. Others favor renters, offering more protections and limits on rent increases, which can affect how you manage your property.

  • Taxes: Property taxes can impact your profits, so check the rates in different states and localities within a state. States with lower property taxes are better for cash flow because it keeps your monthly payments lower relative to states with higher tax burdens. Some states have no state income tax, which can be a tax advantage for investors– be sure to speak with a tax professional as you make your decision.

  • Climate: The climate can affect your property’s upkeep and insurance costs. States with severe weather like hurricanes or snowstorms may cost more to maintain, while milder climates may attract more renters and lower maintenance expenses.

  • Appreciation rate: Appreciation refers to the increase in property values over time. To evaluate a market’s growth potential, research both the trends in property value appreciation and the rate of rental income growth compared to other cities across the United States. This will help you understand whether the market is trending in a positive direction.

  • Understand investment strategies: Different areas support different investment strategies. Some locations may have high property prices, making them better for flipping if you can find a property to renovate and resell. Others could be great for short-term rentals if they’re near attractions like national parks or beaches. And as a buy-and-hold landlord, you can look for places that offer a favorable price-to-rent ratio.

Apply for a rental property loan.

Exploring cities and local markets

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.

  • Major employers: A diversified job market is crucial. Cities that rely on one major employer may face significant risks if that company leaves. Look for areas with stable industries like healthcare, education, or government jobs to ensure long-term economic stability.

  • Assigned school districts: Quality school districts can drive demand for housing, particularly in family-oriented neighborhoods. Areas with top-rated public schools are often in higher demand, attracting families and driving up property values, which could also increase rental demand.

  • Transportation: Easy access to highways, public transit, and other forms of transportation makes commuting more convenient. Areas with access to transportation tend to appeal to prospective renters–especially those who work in nearby cities or need easy access to nearby job hubs.

  • Rental demand and vacancy rates: Investigate the rental demand in different cities. Places with low vacancy rates and high rental demand are ideal for investors looking for consistent cash flow. Areas with strong rental markets often have competitive rental prices and less renter turnover.

  • Know the neighborhoods: Not all neighborhoods within a city or town are the same. Some may have higher demand due to proximity to schools, amenities, or transportation. Researching each neighborhood helps you pinpoint the areas with the most potential for rental properties or future appreciation.


Have a rental property in mind? Get a mortgage quote today.

Explore international investor mortgage options across the U.S.

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.


Start today!

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