Shifting U.S. migration patterns are sending an important signal to commercial real estate (CRE) investors. According to United Van Lines’ annual migration report, Americans are no longer moving primarily for economic opportunity, but instead for affordability, proximity to family, and quality of life. This has driven increased interest in smaller and mid-sized markets rather than major urban cores, with states like Oregon, the Carolinas and parts of the South seeing strong inbound movement. At the same time, previously popular destinations such as Florida and Texas are experiencing more balanced or volatile migration flows, while younger generations gravitate toward relatively affordable alternatives near major cities, such as New Jersey.
These evolving motivations are reshaping CRE demand. As BGO Chief Economist Ryan Severino notes, migration driven by lifestyle and affordability requires different real estate solutions than growth fueled by strong job creation. Investors are increasingly focusing on affordable housing, modest office parks, lower- to middle-income retail, and supporting uses such as self-storage. However, slowing population growth, household formation, and migration rates suggest that past assumptions of ever-accelerating Sun Belt demand may no longer hold, reinforcing the need for more selective, data-driven investment strategies.
Read more: https://link.cnbc.com/public/43367186