Virginia: Still More People Leaving than Coming

Source: StatChat blog

by James A. Bacon

The net out-migration of Virginian taxpayers continued in 2018, extending a six-year trend and contributing to the slowest rate of population growth in Virginia since the 1920s when African-Americans were fleeing the state’s oppressive Jim Crow laws. If there’s a silver lining to the data published by the University of Virginia Demographics Research Group in its StatChat blog, it’s that the rate of emigration seems to be slowing.

Annual population growth in the Old Dominion peaked at 2.4% in the 1940s, driven by the Baby Boom, and has slowed since. By the 2000s, population growth had fallen to 1.3% annually. In the decade of the 2010s, it plunged to 0.7% — a slower rate of growth than in the Great Depression (1.1%). One has to go back to the 1920s (0.5%) to find a lower rate of growth.

Hamilton Lombard offers this analysis:

The recent shift in Virginia to out-migration has been driven, just as during the 1920s, by changes within Virginia’s economy, principally Northern Virginia’s economy. Decades of above average economic growth in the Washington DC area, in large part due to the expansion of the federal government, attracted hundreds of thousands of people to the region, fueling the majority of Virginia’s population growth by the 1980s. … But for much of the 2010s, economic growth in the DC area has lagged the rest of the U.S., in part due to the Federal Budget Sequestration.

Despite its slowdown, Northern Virginia is still growing faster than the Rest of Virginia (RoVa), thanks mainly to an influx of foreign immigrants, a younger population and a surplus of births over deaths. By contrast, in 2018, 64 of Virginia’s 95 counties had more deaths than births.

The aging of the population and the slowing birth rate is affecting communities across the United States. But the chronic loss of taxpaying households, as measured by the Internal Revenue Service, suggests a decline in Virginia’s economic dynamism.


This map from StatChat shows where in-migrants are coming from (politically “blue” states to the north, mostly the Mid-Atlantic and New England) and where they’re going (“red” states, mostly, including Texas and states to the south).

The morsel of consolation is that the rate of out-migration seems to be slowing. The net loss of migrants peaked at 20,000+ in 2013-14 and 2014-15, but declined to fewer than 5,000 in 2018. One can hope that the state reached break-even in 2019. The influx of Amazon jobs in Arlington could push Virginia into positive territory in the next few years.

In other demographic news, Lombard reported a couple of milestones for 2019:

  • The City of Chesapeake surpassed Norfolk as the second most populous locality in Hampton Roads, exceeded only by Virginia Beach.
  • Montgomery County, home to Virginia Tech, passed the 100,000 mark, making it the largest locality west of the Blue Ridge Mountains.

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24 responses to “Virginia: Still More People Leaving than Coming”

  1. Stephen Moret points out that Lombard’s Virginia data is paralleled by U.S. data published by the Brookings Institution, which finds that the 2010s likely saw the slowest rate of population growth in U.S. history.

    https://www.baconsrebellion.com/app/uploads/2020/01/US_growth.jpg

    1. LarrytheG Avatar

      slowest rate for the US as a whole, right?

      I think population growth and migration are two distinct issues and if
      one is claiming that migration alone – separate from population – is indicating that people ARE leaving places like NoVa – it’s an important trend but my suspects are this is not true but could be if the data are pure and convincing. If true, it could mean financial trouble for Virginia.

  2. Reed Fawell 3rd Avatar
    Reed Fawell 3rd

    Consider this:

    1/ Decline in numbers of taxpaying families,
    2/ Decline in healthy families of any sort,
    3/ Proliferation of young and middle aged singles (lonely people),
    4/ Increasing percentages of single mothers with children without fathers, live in or otherwise,
    4/ Increasing percentages of widowed and/or divorced middle aged and baby boomer people, who are now single and immobile aging population.
    5/ Increasing percentages of highly mobile baby-boomers reaching retirement age, seeking escape from Blue state costs, taxes, and toxic societies, and cold weather, so moving to warm weather and low taxes.
    6/ Quickly declining birth rates throughout society and all of its classes, many segments of that population with birth rates that are hitting and falling ever farther below replacement, roughly 1.7 per female.

    This is one future for Virginia. Unless it gets its current crazy act back together and on a healthy track, more and more of its most productive citizens will flee the state, and for very good cause, irrespective of Amazon.

    Why?

    Because increasingly there are fewer and fewer people who have no choice but to live in an increasingly dysfunctional state with a toxic social environment like California and New York, places where Virginia seems now headed at warp speed.

    1. Reed Fawell 3rd Avatar
      Reed Fawell 3rd

      What’s the powerful fuel driving this exodus from high tax blue states?

      Consider Wall Street Journal’s Jan. 11, 2020 editorial:

      “Blue State Redistribution – High-tax states are losing people, money and seats in Congress.”

      “The U.S. population grew last year at the slowest rate since World War I as the birth rate and immigration declined, the Census Bureau reported last week. Slowing population growth will have significant economic and social implications for the country, but especially for high-tax states.

      The Census Bureau and IRS last week also released state population growth and income migration data for 2018 that show the exodus from high-tax to low-tax states is accelerating. Four states have lost population since 2010 including West Virginia (-3.3%), Illinois (-1.2%), Vermont (-0.3%) and Connecticut (-0.2%), but 10 experienced declines last year. New York was the biggest loser as a net 180,000 people left for better climes. Over the last decade New York has lost more of its population to other states (7.2%) than any other save Alaska (8%), followed by Illinois (6.8%), Connecticut (5.6%) and New Jersey (5.5%).

      Hmmm, what do these states have in common? Large tax burdens and politically powerful public unions. Illinois’s property tax rates are the second highest in the country after New Jersey. The state lost $5.6 billion in adjusted gross income last year to other states, about twice as much as in 2012. Notably, income outflow hasn’t increased from Michigan or Wisconsin.

      Illinois’s 4.95% flat income tax is lower than many of its neighbors, but Democrats are pushing a state constitutional amendment on the November ballot for a progressive income tax. Voters should look how that’s turned out for other high-tax states.

      New York’s 12.7% top marginal rate is the second highest in the U.S. In the last two years New York has lost a net $18 billion in adjusted gross income. The wealth exodus is reducing revenue and making it harder to fund programs like Medicaid. As Gov. Andrew Cuomo groused last year, “Tax the rich, tax the rich, tax the rich. We did that. God forbid the rich leave.” …

      For more see:
      https://www.wsj.com/articles/blue-state-redistribution-11578443075

      Also consider that these trends will accelerate as Baby Boomers age, and as more and more citizens grow mobile by reason of technology, and as well run states learn how to attract these migrants in ever more ways.

      Hence, the migrant outflow will compound losses for states with unwise policies.

      Meanwhile, those states with wise policies will reap ever compounding benefits as their competitive advantages compound as well.

  3. djrippert Avatar

    “Decades of above average economic growth in the Washington DC area, in large part due to the expansion of the federal government, attracted hundreds of thousands of people to the region, fueling the majority of Virginia’s population growth by the 1980s. … But for much of the 2010s, economic growth in the DC area has lagged the rest of the U.S., in part due to the Federal Budget Sequestration.”

    Really?

    Federal spending in 2010 – $3.35T
    Federal spending in 2019 – $4.45T
    CAGR – 2.88%
    Average inflation rate (2009 – 2019) – approx 2%

    Our Federal government spent $1T more in 2019 than 2010. Maybe, for some reason, the kind of spending that’s growing isn’t the kind of spending which fertilizes NoVa’s economy. Or, maybe the cost and quality of life in NoVa have become so out of whack with reality that employers serving the Fedral government have figured out how to employ people outside of Virginia to get the job done.

    1. Agreed. As I recall, sequestration hurt NoVa pretty badly for 2 or 3 years in the mid-2010s. But defense spending under Trump has boomed.

      1. djrippert Avatar

        That contradicts Lombard’s explanation for the outmigration which makes me think some else is at play.

  4. LarrytheG Avatar

    NoVa and the DOD shipyards in Tidewater are the Golden Goose for Virginia. As long as the Federal govt and DOD exist , even when there are “sequesters”, they still will prosper compared to RoVa.

    Virginia could build on them. Those two places could be incubators for any/all technologies that Govt and DOD use.

    And along with that – goes High quality health care – life expectancy in NoVa is among the highest in the world across all other countries.

    Education is in big demand also. The Feds encourage employees to obtain more education.

  5. Stephen Moret points out that Lombard’s Virginia data is paralleled by U.S. data published by the Brookings Institution, which finds that the 2010s likely saw the slowest rate of population growth in U.S. history.

    https://www.baconsrebellion.com/app/uploads/2020/01/US_growth.jpg

    1. LarrytheG Avatar

      slowest rate for the US as a whole, right?

      I think population growth and migration are two distinct issues and if
      one is claiming that migration alone – separate from population – is indicating that people ARE leaving places like NoVa – it’s an important trend but my suspects are this is not true but could be if the data are pure and convincing. If true, it could mean financial trouble for Virginia.

  6. Reed Fawell 3rd Avatar
    Reed Fawell 3rd

    Consider this:

    1/ Decline in numbers of taxpaying families,
    2/ Decline in healthy families of any sort,
    3/ Proliferation of young and middle aged singles (lonely people),
    4/ Increasing percentages of single mothers with children without fathers, live in or otherwise,
    4/ Increasing percentages of widowed and/or divorced middle aged and baby boomer people, who are now single and immobile aging population.
    5/ Increasing percentages of highly mobile baby-boomers reaching retirement age, seeking escape from Blue state costs, taxes, and toxic societies, and cold weather, so moving to warm weather and low taxes.
    6/ Quickly declining birth rates throughout society and all of its classes, many segments of that population with birth rates that are hitting and falling ever farther below replacement, roughly 1.7 per female.

    This is one future for Virginia. Unless it gets its current crazy act back together and on a healthy track, more and more of its most productive citizens will flee the state, and for very good cause, irrespective of Amazon.

    Why?

    Because increasingly there are fewer and fewer people who have no choice but to live in an increasingly dysfunctional state with a toxic social environment like California and New York, places where Virginia seems now headed at warp speed.

    1. Reed Fawell 3rd Avatar
      Reed Fawell 3rd

      What’s the powerful fuel driving this exodus from high tax blue states?

      Consider Wall Street Journal’s Jan. 11, 2020 editorial:

      “Blue State Redistribution – High-tax states are losing people, money and seats in Congress.”

      “The U.S. population grew last year at the slowest rate since World War I as the birth rate and immigration declined, the Census Bureau reported last week. Slowing population growth will have significant economic and social implications for the country, but especially for high-tax states.

      The Census Bureau and IRS last week also released state population growth and income migration data for 2018 that show the exodus from high-tax to low-tax states is accelerating. Four states have lost population since 2010 including West Virginia (-3.3%), Illinois (-1.2%), Vermont (-0.3%) and Connecticut (-0.2%), but 10 experienced declines last year. New York was the biggest loser as a net 180,000 people left for better climes. Over the last decade New York has lost more of its population to other states (7.2%) than any other save Alaska (8%), followed by Illinois (6.8%), Connecticut (5.6%) and New Jersey (5.5%).

      Hmmm, what do these states have in common? Large tax burdens and politically powerful public unions. Illinois’s property tax rates are the second highest in the country after New Jersey. The state lost $5.6 billion in adjusted gross income last year to other states, about twice as much as in 2012. Notably, income outflow hasn’t increased from Michigan or Wisconsin.

      Illinois’s 4.95% flat income tax is lower than many of its neighbors, but Democrats are pushing a state constitutional amendment on the November ballot for a progressive income tax. Voters should look how that’s turned out for other high-tax states.

      New York’s 12.7% top marginal rate is the second highest in the U.S. In the last two years New York has lost a net $18 billion in adjusted gross income. The wealth exodus is reducing revenue and making it harder to fund programs like Medicaid. As Gov. Andrew Cuomo groused last year, “Tax the rich, tax the rich, tax the rich. We did that. God forbid the rich leave.” …

      For more see:
      https://www.wsj.com/articles/blue-state-redistribution-11578443075

      Also consider that these trends will accelerate as Baby Boomers age, and as more and more citizens grow mobile by reason of technology, and as well run states learn how to attract these migrants in ever more ways.

      Hence, the migrant outflow will compound losses for states with unwise policies.

      Meanwhile, those states with wise policies will reap ever compounding benefits as their competitive advantages compound as well.

  7. LarrytheG Avatar

    That map is confusing. What does it mean for example for New York?

    I think it more represents what is happening to rural Virginia not urban Virginia:

    https://bloximages.newyork1.vip.townnews.com/roanoke.com/content/tncms/assets/v3/editorial/e/8b/e8b31989-1ca7-57d6-bd87-7776898b2dcf/5c5076dfabc82.image.jpg?resize=1200%2C729

    I don’t think taxpayers in the more prosperous cities and counties in Virginia are leaving for “greener” pastures. It’s more like those who are low income and under educated who can’t compete for jobs in the urban areas and perhaps those who receive entitlements.

  8. LarrytheG Avatar

    That map is confusing. What does it mean for example for New York?

    I think it more represents what is happening to rural Virginia not urban Virginia:

    https://bloximages.newyork1.vip.townnews.com/roanoke.com/content/tncms/assets/v3/editorial/e/8b/e8b31989-1ca7-57d6-bd87-7776898b2dcf/5c5076dfabc82.image.jpg?resize=1200%2C729

    I don’t think taxpayers in the more prosperous cities and counties in Virginia are leaving for “greener” pastures. It’s more like those who are low income and under educated who can’t compete for jobs in the urban areas and perhaps those who receive entitlements.

  9. djrippert Avatar

    “Decades of above average economic growth in the Washington DC area, in large part due to the expansion of the federal government, attracted hundreds of thousands of people to the region, fueling the majority of Virginia’s population growth by the 1980s. … But for much of the 2010s, economic growth in the DC area has lagged the rest of the U.S., in part due to the Federal Budget Sequestration.”

    Really?

    Federal spending in 2010 – $3.35T
    Federal spending in 2019 – $4.45T
    CAGR – 2.88%
    Average inflation rate (2009 – 2019) – approx 2%

    Our Federal government spent $1T more in 2019 than 2010. Maybe, for some reason, the kind of spending that’s growing isn’t the kind of spending which fertilizes NoVa’s economy. Or, maybe the cost and quality of life in NoVa have become so out of whack with reality that employers serving the Fedral government have figured out how to employ people outside of Virginia to get the job done.

    1. Agreed. As I recall, sequestration hurt NoVa pretty badly for 2 or 3 years in the mid-2010s. But defense spending under Trump has boomed.

      1. djrippert Avatar

        That contradicts Lombard’s explanation for the outmigration which makes me think some else is at play.

  10. LarrytheG Avatar

    NoVa and the DOD shipyards in Tidewater are the Golden Goose for Virginia. As long as the Federal govt and DOD exist , even when there are “sequesters”, they still will prosper compared to RoVa.

    Virginia could build on them. Those two places could be incubators for any/all technologies that Govt and DOD use.

    And along with that – goes High quality health care – life expectancy in NoVa is among the highest in the world across all other countries.

    Education is in big demand also. The Feds encourage employees to obtain more education.

  11. johnrandolphofroanoke Avatar
    johnrandolphofroanoke

    Virginia saw a flat population growth in the Age of Jackson. The chief reason was the expansion of the nation in the deep south and in the Trans-Mississippi. The youth of Virginia simply followed the opportunity. I think that is what is part of what is happening now. Talented Virginians are following the opportunity occurring in other places.

    1. djrippert Avatar

      I think you’re right. In many parts of Virginia our educational system is better than our economic system + the standard of living. Each Spring I watch as kids from Fairfax County Public Schools and the myriad private schools in the county head off to Ivy League colleges, top tier public colleges, etc. Four of my own kids have been through this process. None of them (nor their friends) had any particular desire to come back to Northern Virginia or come back to anywhere in Virginia. Nashville, Chicago, Charlotte, Austin – they had plenty of dreams. Virginia just wasn’t among them.

      Now, let’s talk about the City of Richmond. Why has that city languished for the past 100 years while cities like Charlotte, Dallas, Atlanta, Houston, Austin, Nashville, etc have prospered? People from Richmond will say that they enjoy the laid back small city lifestyle. Fine. I get that. But if you believe these two things:

      Virginia has to diversify from a Federal government based economy, and;
      Modern economic opportunity and growth happens in cities

      then what’s left for Virginia other than a much more vibrant and fast growing Richmond?

      I guess you could try to change Northern Virginia’s stripes (or Hampton Roads’ stripes) from Federal centric to private sector centric but that’s quite a challenge.

  12. johnrandolphofroanoke Avatar
    johnrandolphofroanoke

    Virginia saw a flat population growth in the Age of Jackson. The chief reason was the expansion of the nation in the deep south and in the Trans-Mississippi. The youth of Virginia simply followed the opportunity. I think that is what is part of what is happening now. Talented Virginians are following the opportunity occurring in other places.

    1. djrippert Avatar

      I think you’re right. In many parts of Virginia our educational system is better than our economic system + the standard of living. Each Spring I watch as kids from Fairfax County Public Schools and the myriad private schools in the county head off to Ivy League colleges, top tier public colleges, etc. Four of my own kids have been through this process. None of them (nor their friends) had any particular desire to come back to Northern Virginia or come back to anywhere in Virginia. Nashville, Chicago, Charlotte, Austin – they had plenty of dreams. Virginia just wasn’t among them.

      Now, let’s talk about the City of Richmond. Why has that city languished for the past 100 years while cities like Charlotte, Dallas, Atlanta, Houston, Austin, Nashville, etc have prospered? People from Richmond will say that they enjoy the laid back small city lifestyle. Fine. I get that. But if you believe these two things:

      Virginia has to diversify from a Federal government based economy, and;
      Modern economic opportunity and growth happens in cities

      then what’s left for Virginia other than a much more vibrant and fast growing Richmond?

      I guess you could try to change Northern Virginia’s stripes (or Hampton Roads’ stripes) from Federal centric to private sector centric but that’s quite a challenge.

  13. LarrytheG Avatar

    In terms of well-educated kids in urban areas leaving to find their dreams, NoVa is not unique; that’s probably common across the country’s urbanized areas.

    The real question is jobs and economic opportunity. That’s what draws people including immigrants.

    If you take NoVa and Hampton out of Virginia population and migration statistics – you’ll see a very different picture than if you leave them in and represent the state as a whole.

    As long as the DC-VA-Md region are the headquarters for DOD and all the other Federal Agencies – that region will prosper and the funny thing is – with all those govt jobs – the MSA has one of the highest household income numbers in the nation.

    But I did find this – which is interesting:

    https://s3.amazonaws.com/uploads.thirdway.org/products/the-opportunity-index/Graphs_1.png

  14. LarrytheG Avatar

    In terms of well-educated kids in urban areas leaving to find their dreams, NoVa is not unique; that’s probably common across the country’s urbanized areas.

    The real question is jobs and economic opportunity. That’s what draws people including immigrants.

    If you take NoVa and Hampton out of Virginia population and migration statistics – you’ll see a very different picture than if you leave them in and represent the state as a whole.

    As long as the DC-VA-Md region are the headquarters for DOD and all the other Federal Agencies – that region will prosper and the funny thing is – with all those govt jobs – the MSA has one of the highest household income numbers in the nation.

    But I did find this – which is interesting:

    https://s3.amazonaws.com/uploads.thirdway.org/products/the-opportunity-index/Graphs_1.png

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