Florida Tops the Chart Once Again with Worker Gains Across the Country
Upon the recent release of a January LinkedIn report, experts are buzzing about Florida’s continued growth. Of the top 10 cities growing the fastest in the U.S., four of them are in Florida, followed closely by three in Texas, and two in North Carolina.
Why is Florida continuing to top the charts for the highest net worker migration in the United States? What places are people leaving to get to the Sunshine State? Most importantly, what does all this information mean for your investing strategy?
The Report
Coming in at the top of LinkedIn’s list is Sarasota, Florida. The city reported a net gain of 107 new workers per 10,000 LinkedIn members throughout 2023.
This January report, compiled by data collected through LinkedIn, tracked the location changes on profiles of its 206 million users within the U.S. for the 12 months of January through December 2023. The analysts at LinkedIn then examined the data to understand where users are moving, and where they are leaving.
Surprisingly, even though four of the highest-ranked metros for worker gains are in Florida, two of the highest in worker losses are also in Florida.
Where People Are Going
We know Sarasota, Florida, claimed the number one spot on the top 10 list, but did you guess that Florida took the second spot as well?
If you did, you guessed right!
The Tampa Bay area came in at number two followed by Charlotte, NC; Jacksonville, FL; Austin, TX; Raleigh-Durham, NC; and Nashville, TN.
The remaining top 10 metros with worker gain per capita include Dallas, TX; Orlando, FL; and Houston, TX.
There are as many reasons for this migration trend as people are moving.
However, the rise in recent years of remote work and migration to states boasting lower costs of living and warmer climates has been notable. Additionally, the lack of state income tax in Florida has been reported as a factor for many making the move.
Growing Businesses
With a net positive influx to the population, housing demands continue to remain strong in Florida.
In recent findings by Wells Fargo, Florida is predicted to continue economic expansion in 2024 largely because of a strong job market.
As you can see from the LinkedIn findings as well as overall state-to-state migration patterns, it is undeniable that people are flocking to Florida in large numbers.
Florida’s GDP growth surpassing the national average for 10 quarters in a row is no surprise, especially once you account for the increase of corporate headquarters in Florida.
HireAHelper.com analyzed SEC filings of corporate headquarters in The Sunshine State, revealing that they increased by 86% in the 12-month period ending in March 2023. Out of all 50 states, Florida topped the chart with their growth yet again.
The report also found that three cities in Florida — Jacksonville, Tampa, and Miami — were included in the top 10 list of U.S. cities for highest corporate headquarters gains.
Whether people are coming for the sunshine, the lower cost of living, or the growing job opportunities, the future of Florida’s economy is looking bright for 2024.
LinkedIn surmises that a determining factor in these statistics could be the hiring rate.
Where People Are Leaving
College graduation rates might be a contributing factor in the outflow of workers. The LinkedIn report on worker migration found that the list of top 10 cities losing workers was led by three that have major public college campuses.
While this may play a factor, the report itself uses figures of net migration, which means analysts subtract the number of departures from new arrivals. It is unlikely college campus location is the main reason for the departure trend in these areas.
Surprisingly, even though four of the highest-ranked metros for worker gains are in Florida, two of the highest in worker losses are also in Florida. Coming in at the number three and four spots are Gainesville, FL, and Tallahassee, FL.
Again, that could be partly attributed to the college population in those areas. The full list of lowest-ranking metros for worker gains/losses is as follows:
- College Station-Bryan, TX
- Urbana-Champaign, IL
- Gainesville, FL
- Tallahassee, FL
- Memphis, TN
- Boston, MA
- Chicago, IL
- San Francisco Bay Area, CA
- Pittsburgh, PA
- Washington, D.C.
Many of the cities on this list fit the recent trend of migration away from metros with high costs of living and colder climates.
Hidden Costs
While some workers may be searching for a lower cost of living, they are most likely not taking into account Florida’s rising insurance costs for both homes and cars (Florida has the highest cost of homeowner’s insurance in the U.S.) or the rising inflation that is outpacing the national average.
These are all factors to keep in mind, though the housing market in Florida remains one of the most robust and steadily growing in the country.
Things are looking very bright for Florida real estate investors in 2024.
What These Trends Could Indicate
LinkedIn surmises that a determining factor in these statistics could be the hiring rate.
According to the numbers, nationally across all industries, December 2023 saw an increase of 5.5% from November. That’s recorded as the largest month-over-month increase within the past year.
However, the job market saw hiring decreases in much of 2022 and early 2023. So, while this was a high month-over-month increase, compared to December 2022, hiring in 2023 a full year later was still down 9.9% overall.
This may be in part from aggressive interest rate hikes directed by the Federal Reserve.
Hiring Trends
In December alone, hiring increased in 19 of 20 industries tracked by the LinkedIn report. The industries with the strongest growth month-over-month were:
- Retail +13.5%
- Technology, Information, and Media +9.8%
- Manufacturing +9.6%
Since June 2023, hiring has increased across nearly half the industries measured by LinkedIn with Retail, Wholesale, Administrative and Support Services, and Consumer Services seeing the most notable acceleration.
The weakest industries regarding hiring were reported as Transportation, Logistics, Supply Chain, and Storage; Oil, Gas, and Mining; and Entertainment Providers.
Hiring Stabilization
LinkedIn concluded the end of the year 2023 brought gains to nearly all metro areas surveyed while year-over-year hiring trends began to stabilize.
Indicators for a Sunny 2024 Investing Year
Things are looking very bright for Florida real estate investors in 2024. With economic growth, hiring stabilization, and continued demand for housing on the rise, your investment year is filled with options.
Take a minute to go over your 2024 real estate plan and make the most of this opportunity.
