(The Center Square) – North Carolina’s population growth ranked sixth in the nation in 2023, according to the latest U.S. Census Bureau analysis.
The state’s estimated population increased by 139,526 people between July 2022 and July 2023, bringing the total population to 10.8 million. South Carolina and Florida were the only other southeastern states to report faster growth.
Although about 260 fewer people moved to North Carolina from other states over the last year, the number of international immigrants moving in grew 12.4%.
The state also added just over 13,000 more people from seeing more births than deaths.
The news follows an October report that linked North Carolina’s growing population with a housing shortage. The data – compiled from the American Community Survey – shows that Florida, Virginia, South Carolina, New York, California, Georgia and Texas saw residents leave for the Old North State in 2022.
Those new residents have driven up the cost of homes and priced many native North Carolinians out of the market. It compounds a housing shortage that existed well before the pandemic and has only accelerated since.
The migration is fueled in large part by conservative policies since 2011 including spending reductions, tax and labor reforms, reduced regulations and reworked business incentives that have spurred a dramatic rise in economic development.
This rise to the top stemmed in part from an increase in state gross product, from 3.8% behind the national average in the seven years prior to tax reform in 2013 to 9.5%, or 0.5% higher than the national average, in the seven years since.
The reforms attracted massive investments from Fortune 500 companies and small businesses that have driven significant population growth, jobs, and revenues for the state’s coffers.
State lawmakers continued to build on that momentum in the most recent biennial budget by accelerating scheduled reductions in the state’s personal income tax to 3.99% by 2026, with revenue triggers that could further cut the rate by 0.5% per year to get to 2.49% by 2029.
With triggers met, North Carolina would have the lowest income tax among states that impose one, further boosting the state’s economic competitiveness and attraction for businesses, according to the Tax Foundation.
Victor Skinner contributed to this report.
