But in 2026, another state is quietly exploding in popularity — and it may be one of the biggest housing and mortgage stories in America right now.
South Carolina is now growing faster than any other state relative to its population, as thousands of Americans continue relocating away from expensive, high-tax states in search of affordability, lower costs, and a better lifestyle.
And the trend is reshaping housing markets, mortgage demand, and economic growth across the Southern United States.
Americans Continue Moving South in Massive Numbers
According to newly released IRS migration data, South Carolina recorded the highest population growth rate in the nation based on inbound domestic migration.
The state added more than 59,000 new residents from other states in a single year — equivalent to more than 1% of its total population.
That means for every 100 people already living in South Carolina, one new resident moved there from another part of the country.
While Texas and Florida still lead in total migration volume because of their larger populations, South Carolina is now outperforming nearly every other state on a per-capita basis.
The migration surge highlights a major shift happening across the U.S. housing market:
- Americans are prioritizing affordability
- Lower taxes are becoming a major factor
- Remote work continues changing relocation patterns
- Buyers are leaving high-cost urban centers
- Retirees and investors are seeking lower living expenses
- Business owners are relocating to business-friendly states
Why Americans Are Leaving States Like California and New York
The data also revealed continued population losses in several high-cost states.
California reportedly lost more than 100,000 tax filers in a single year, while New York lost nearly 72,000.
Even more important than the population decline is the income leaving with those residents.
Billions of dollars in taxable income are moving away from expensive coastal states and flowing into Southern markets like:
- Florida
- Texas
- South Carolina
- Tennessee
- North Carolina
For mortgage lenders, real estate investors, and developers, this migration trend is becoming one of the most important long-term housing shifts in America.
What This Means for Real Estate Markets
When migration accelerates, housing demand usually follows.
That often creates:
- Increased home prices
- Stronger rental demand
- Faster new construction growth
- Competitive housing inventory
- Rising investor activity
- Increased refinance and purchase volume
Many buyers relocating from higher-priced states also arrive with more equity, larger down payments, or stronger purchasing power — giving them an advantage in Southern housing markets.
This is one reason why markets across Florida, Texas, and the Carolinas continue seeing strong long-term housing demand despite higher mortgage rates.
Florida Continues Leading Mortgage Growth
While South Carolina may be the fastest-growing state relative to population, Florida remains one of the largest mortgage growth markets in the country.
The state continues attracting:
- Retirees
- Remote workers
- Investors
- Self-employed borrowers
- Foreign national buyers
- Real estate entrepreneurs
At the same time, rising insurance costs, affordability pressure, and stricter bank lending guidelines are pushing many borrowers to explore alternative financing solutions.
That is driving increased demand for:
- DSCR loans
- Bank statement loans
- jumbo financing
- Non-QM mortgages
- investor loans
- cash-out refinances
Why More Borrowers Are Using Flexible Mortgage Solutions
Many modern borrowers no longer fit traditional bank guidelines perfectly.
Self-employed income, multiple properties, investment strategies, asset-based wealth, and fluctuating earnings can make conventional approvals more difficult.
Lenders offering flexible mortgage programs are becoming increasingly important in fast-growing states where relocation and investment activity remain elevated.
At Lendworth USA, we help borrowers across the United States explore flexible mortgage solutions for:
- Home purchases
- Refinancing
- Investment properties
- DSCR loans
- Foreign national financing
- Jumbo mortgages
- Self-employed borrowers
- Cash-out refinance strategies
The Migration Trend May Only Be Beginning
The movement happening across America is bigger than real estate alone.
It represents a broader shift in:
- affordability
- taxation
- lifestyle priorities
- remote work flexibility
- business relocation
- long-term economic growth
As more Americans continue relocating toward lower-cost and business-friendly states, housing demand across the South could remain elevated for years to come.
And for borrowers, investors, and homeowners, understanding these migration trends may become increasingly important when making future real estate and financing decisions.