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Illinois, smack dab in the middle of the U.S., once brought in people from all over the country—and even the world—with plenty of job opportunities and renowned colleges and universities. Chicago in particular brought a sense of Midwestern hospitality within an urban environment.
But 56,235 residents left the Land of Lincoln for other states between July 2023 and June 2024. For the first time in 10 years, Illinois was not the state with the most outbound moves. However, it still ranked at number two, just below New Jersey.
What’s causing this trend? We explore the reasons below.
Four reasons Americans are moving out of Illinois
1. Taxes
With a rate of 16.58%, Illinois ranks as number one in terms of the highest annual state and local taxes on the median U.S. household—51% more than the national average.
Other Illinois tax standings:
- Personal income tax: 13th-highest per capita
- Corporate income tax: sixth-highest per capita
- Gas tax: second highest at 66.5 cents per gallon
- Cell phone tax: highest at a rate over 34% (when combined with federal tax)
- Alcohol tax: 16th-highest excise tax on distilled spirits and 12th-highest on wine
- Estate taxes: tied for the second-highest rate
- Property tax: second highest rate at 2.07%
All this said, it is no surprise that taxes are the top reason Illinoisans are choosing to relocate.
2. Housing
Because of high taxes, the economic gap between high-earning and low-wage employees grows. Gentrification of historically working-class areas has caused housing prices to rise, pushing people to less desirable neighborhoods—or, if they can afford it, out of the state entirely.
Home prices in Illinois increased 10.1% in 2024, resulting in a median price of $238,900. Despite increased prices, sales have also increased by 6.9% year over year. Increased demand and higher prices for homes are taking a toll on would-be buyers’ budgets, pushing them towards other, more affordable states.
3. Job market
Illinois, particularly the Chicagoland area, has been a haven for job seekers, whether just starting their careers or decades in.
The following are just some of the recognizable companies headquartered in Illinois:
- AbbVie
- Allstate
- John Deere
- Kraft Heinz
- McDonald’s Corporation
- United Airlines
- Walgreens
Layoffs and hiring freezes across the tech organizations and large corporations that once drew people to the state have made the job market less competitive with other states. Some large businesses with a presence in Illinois,like Boeing and Caterpillar, have moved their headquarters elsewhere.
In 2024, Illinois had a 4.4% job opening rate and 4.9% unemployment. This is an improvement from previous years, but still leaves about 1.2 unemployed people per available job in the state—a much higher ratio than the national average of 0.9. And it’s not just in the tech space seeing a downward trend; working class and manufacturing opportunities are also decreasing.
4. Weather
Live anywhere in the Midwest, and you’ll have to deal with some level of seasonal changes. Certain areas of Illinois, especially those on or near Lake Michigan, have especially harsh winters, with bitter cold and lake-effect winds. Some can handle it, and even embrace it by participating in winter sports, while others find it intolerable, choosing to hole up until the snow melts and signs of spring appear.
While not the major reason for the state’s population loss, plenty of residents—especially older and retired people—are trading in their snow boots and heavy coats for sunscreen and bathing suits and heading for Florida, Arizona, and other warmer locations.
(Your new) home, sweet home
If you plan to join those leaving Illinois (many of whom are heading south), you’ve got some work ahead of you. In addition to getting your furniture, clothing, and other belongings packed up, you’ll have to hire movers and arrange new schools, medical providers, and other services in your new area.
Check out the helpful guides below to prepare for your move:
- 6 Steps for Moving Out of State for the First Time
- Do You Tip Moving Companies? And Other Moving FAQs
- How to Change Your Car Registration When You Move
One thing that isn’t always at the top of movers’ minds is figuring out how to get vehicles across the country. Like professional movers, car shipping companies load your vehicle onto a truck or trailer and deliver it to your new home. Montway Auto Transport has an expansive network of auto transport carriers and will find the best one for your needs. Request a quote on our site or call us at 888-666-8929 to get started and get your car shipping arranged quickly and efficiently.
