North Dakota has been drawing people from other states at a rapid clip in recent years, driven by its booming oil and gas industry and low cost of living.
North Dakota notched a net migration rate of 1.76% in 2023, followed by South Carolina at 1.30%, according to a ConsumerAffairs analysis of the latest U.S. Census Bureau data on population and state-to-state migration flows.
Net migration rates between states show how people moving in and out contribute to overall population change, suggesting where Americans are seeing better prospects in the nation.
By comparison, 45 states had net migration rates below 1% and 18 of those states had negative rates.
Over a two-year average from 2022 to 2023, North Dakota's state-to-state net migration rate ranked No. 1 in the U.S.
ConsumerAffairs determined the net migration rates of every U.S. state, plus the District of Columbia, in 2023 and 2022 by calculating the difference between those moving in and out, and then dividing the difference by mid-year population estimates.
Demographers say net migration rates for states with lower populations, such as North Dakota, should be viewed cautiously because the numbers can swing dramatically.
Still, North Dakota has done a good job of keeping people in the state and bringing in new residents from the rest of the country despite a sometimes harsh climate, which in January can range from 1°F to 19°F across various parts of the state.
North Dakota had total net migration from other states—found by subtracting the number of people who came in from those who left—of 13,601 people in 2023, more than doubling from 6,177 people in 2022.
North Dakota boosted its net migration at a time when state-to-state migration sharply fell after it became more difficult to get remote jobs and move to more economically-advantageous states.
North Dakota's gains came despite a slowdown in migration nationwide. Nearly 7.6 million people moved between states in 2023 versus around 8.2 million in 2022, marking the lowest level within the last four recorded years.
Why are people moving to North Dakota?
Tens of thousands of Americans have flocked to North Dakota in recent years in large part because of its low cost of living and economic opportunity.
North Dakota has the twelfth lowest cost of living in the U.S as of the third quarter of 2024, according to the Economic Research and Information Center.
The state's financial advantages have attracted younger people from the Gen-Z generation seeking a higher quality of life without the high costs associated with more populous regions, even though some may call the state "insanely boring," The New York Post reports.
And North Dakota's economy, particularly in sectors like energy, agriculture, and technology, offers abundant job prospects, according to North Dakota Compass, a research publication. The oil boom in the Bakken formation has significantly contributed to employment opportunities and economic prosperity.
North Dakota Governor Doug Burgum told ConsumerAffairs that the state has waged a campaign called "Find the Good Life" to connect job seekers from other states with employers.
"We’re proving to be more attractive to job seekers and families looking to make a move because we’re telling our story and showcasing all the ways people can thrive in North Dakota," Burgum said.
North Dakota suffered significant negative net migration in the 1990s and early 2000s, which politicians fought with attractive taxes to keep people in the state, David Flynn, director for the Institute of Policy and Business Analytics at the University of North Dakota, told ConsumerAffairs.
"Out migrants from that time do look to return, often still have family and friends here, now that economic vitality here is high," Flynn said.
"North Dakota’s success in attracting new residents underscores the remarkable strengths of our great state," agreed Fargo Mayor Dr. Tim Mahoney. "As North Dakota’s largest city, Fargo is proud to lead this growth by fostering a vibrant community, a strong economy and an exceptional quality of life.
Where are people moving to North Dakota coming from?
North Dakota's neighbor Minnesota was the biggest contributor of people moving in, accounting for around 29% of migrants from other states.
"A large percentage of the net migration in the last few years comes from a large bordering state," Flynn said. "The mix of political and economic motivations are likely large motivators for this migration."
But other states outside of the region also made a difference.
Texas accounted for around 12% of migrants to North Dakota, followed by Louisiana (6.5%) and Florida (5.7%).
Texas, Louisiana and North Dakota all have strong oil and gas industries, which may explain some of the overlap between the states due to the jobs the industry creates, Flynn said.
Eleven states sent no migrants to North Dakota in 2023, including Connecticut, Massachusetts and Mississippi.
