Ranking the States: Where Does Yours Place in Standard of Living?
Delaney O’Kray-Murphy, EBRC research economist
Arizona ranked 9th in relative standard of living
Every year, millions of Americans pack their bags and move to new places, chasing better jobs, affordable homes, or vibrant lifestyles. In 2023, over 30 million people relocated within the United States, with more than 7.5 million crossing state lines, according to the 2023 American Community Survey (ACS) 1-year estimates. Among the top destinations, Florida led with 636,933 new residents from other states, followed closely by Texas with 611,942, and California with 422,075. These migration patterns reveal which states are thriving and how they reflect differences in affordability, opportunity, and quality of life across the U.S.
Arizona also stood out as a popular destination, ranking 8th in domestic inflows with 256,203 people moving in from other parts of the U.S., according to ACS 1-year estimates. Exhibits 1 and 2 illustrate 2023 domestic inflows and outflows, ranking all 51 states (including Washington, D.C.) to show which places gained or lost the most residents. Arizona’s strong performance, landing in the top quintile for inflows and the second-highest quintile for outflows, underscores its broad appeal, driven by economic opportunities, a desirable climate, and other quality-of-life factors. These exhibits provide a clear snapshot of population shifts, highlighting the dynamic nature of state-level migration.
Exhibit 1: Annual Domestic In-Migration With Rankings by Destination State, Persons 1+, 2023 ACS State-To-State 1-Year Estimates
Exhibit 2: Annual Domestic Out-Migration With Rankings by Origin State, Persons 1+, 2023 ACS State-To-State 1-Year Estimates
Net domestic migration, the difference between people moving in and out of a state, offers a clear view of population changes. Exhibit 3 shows the net domestic migration for 2023 with rankings. Arizona ranks 5th, gaining 62,533 residents, trailing Texas (133,372), Florida (126,008), North Carolina (106,592), and South Carolina (68,667). Conversely, California saw the most significant net loss, with 268,052 more residents leaving than arriving, followed by New York (-178,709) and Illinois (-93,247).
The data in Exhibit 3 highlights a broader movement toward southern states, likely driven by climate, housing affordability, or desired lifestyle changes. Environmental preferences are evident in the concentration of top-ranking states in the South, suggesting that many movers prefer warmer, sunnier climates. Interestingly, states like New York and California, which see high inflows and outflows, often result in little or no net gain. Despite attracting many new residents, they lose just as many, or more, to outbound migration, placing them among the lowest in net domestic migration rankings.
Exhibit 3: Annual Domestic Net Migration With Rankings by State, Persons 1+, 2023 ACS State-To-State 1-Year Estimates
While net migration highlights population shifts, it doesn’t fully explain why some states are more desirable places to live. To assess this, economist Stratford Douglas (1997) developed a model that ranks states based on their relative domestic migration flows. His approach compares movement between two states, labeling one as the “winner” if more people move to it and the “loser” if more leave, assigning a score of 1 or -1. For example, if more people move from California to Arizona than vice versa, Arizona wins that matchup. Aggregating these outcomes produces a ranking reflecting the relative standard of living as inferred from domestic migration decisions.
Exhibit 4 displays these rankings for all U.S. states, with the District of Columbia (not shown) at 17th. Arizona ranks 9th, demonstrating a strong position among western states. South Carolina, Wisconsin, and Maine take the top three spots, likely due to low costs and strong local amenities. In contrast, New Jersey, California, and Illinois rank at the bottom, possibly because of high taxes or expensive housing. These rankings offer a data-driven perspective on which states are most often preferred by movers, indicating relative living conditions expressed through population movements.
Exhibit 4: Relative Standard of Living Rankings by State, 2023 ACS State-To-State 1-Year Survey, Persons 1+, Methodology by S. Douglas (1997)
The 2023 domestic migration data reveal distinct patterns in population flows across the U.S., with states in the South and certain northern regions emerging as top destinations, while others, including states like California and New York, experience net loss, reflecting challenges like high taxes and housing costs. Stratford Douglas’ migration-based rankings offer a quantitative lens on these trends, grounded in observed migration decisions rather than subjective assessments. Arizona’s strong ranking in domestic migration inflows and relative standard of living underscores its position as a competitive destination within the national landscape.
