Why Florida and Texas are booming (and NY and California are not) | Economist Joseph Politano

Jun 2, 2025

Joseph Politano, a financial management analyst and economics writer, dives into the significant post-COVID migration trends reshaping the U.S. economy. He explains how remote work has fueled growth in less-dense, affordable states like Texas and Florida, which have seen soaring GDPs. As urban areas like New York and California lose residents, Politano stresses the need for these states to reform housing and transportation policies to retain talent. The discussion highlights the economic winners and losers of this dramatic shift.

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INSIGHT

Surging Growth in Florida & Texas

Florida and Texas are experiencing the fastest GDP growth in the US since COVID, with Florida growing over 20% and Texas over 14%.
Both states have also seen job increases of around 9%, driven by booming economies comparable to rapidly industrializing nations.

INSIGHT

Remote Work Spurs Rocky Mountain Growth

Rocky Mountain states like Idaho, Utah, Arizona, and Colorado have grown rapidly due to remote work enabling migration.
On the other hand, New York and Illinois have struggled with weak job recovery and slow economic growth.

INSIGHT

Remote Work and Housing Drive Migration

Remote work is shifting people from dense, unaffordable urban areas to more affordable, spacious suburban locations.
Housing construction plays a critical role; states like Texas and Florida building more homes attracts more residents.

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The winners of the remote work boom? Utah, Arizona, and Maine. Here’s what the US’ post-pandemic migration looks like.

In the wake of COVID, rising populations are shifting out of states like New York and California and moving to previously less-popular landscapes. The biggest beneficiaries of the post-pandemic economy have been states in the American South, including Texas and Florida, which has seen the fastest GDP growth of any state since the start of COVID, at more than a 20% increase.

What is driving these shifts in economic geography? Economist Joseph Politano points out that the most obvious factor is the increasing remote work possibilities. Some of the biggest states to lose residents have been dense, urbanized, unaffordable areas, and some of the biggest winners have been less dense, suburban, more affordable areas. People, when given the flexibility to tele-work, choose places that are more spacious suburban states than they did before the pandemic.

California and New York are going to have to reform a lot of their policies around housing, construction, and transportation if they want to compete in this new economy. And if they don't, the exodus to states like Texas and Florida will only continue.

**📦 America’s Post-COVID Migration: Who’s Winning and Losing**

Since COVID, Americans have been relocating in droves — and it's reshaping the U.S. Economy.

### 🏆 Winners:

- **Florida** (+20% GDP) and **Texas** (+14% GDP): Booming jobs, fast growth, lots of new housing.

- **Rocky Mountain states** (Idaho, Utah, Arizona, Colorado): Gaining people thanks to remote work.

### 📉 Losers:

- **New York** and **Illinois**: Weak job recovery, slow GDP growth.

- **California**: Strong GDP but losing jobs due to high costs and limited housing.

### 💡 Why?

1. **Remote work**: People are ditching dense, pricey cities for affordable suburbs.

2. **Housing construction**: States that build more (like TX & FL) attract more people.

3. **Industry spread**: Tech, finance, and entertainment are no longer stuck in one place.

### 🏙️ The California Problem:

Still dominant in tech, but too expensive to keep everyone. Without policy reforms, outmigration will continue.

> 📍 Bottom line: In the new economy, **mobility + affordability = growth**.

About Joseph Politano:

Joseph Politano is a Financial Management Analyst at the Bureau of Labor Statistics working to support the Labor Market Information and Occupational Health and Safety surveys that BLS conducts. He writes independently about economics, business, and public policy for a better world at apricitas.substack.com.

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