This article reveals the fastest declining states in the United States. For a detailed ranking, visit 15 Fastest Declining States in America.
According to the U.S. Census Bureau, while the U.S. population will continue to grow, the rate of growth has slowed significantly. Projections call for it to reach around 370 million people in 2080, then decline slightly to 366 million by 2100. This represents a modest increase of 9.7% over 80 years, confirming the long-term trend of flattening the population curve.
One of the main reasons for the projected population decline is the decline in birth rates and, as a result, the decline in birth rates. The long-term decline in U.S. birth rates continued into 2023, according to preliminary data from the Centers for Disease Control and Prevention (CDC). Approximately 3.6 million babies were born that year, which translates into a birth rate of 54.4 babies per 1,000 people. This would be the lowest recorded in the country in more than a century. The population is also aging due to declining birth rates and increasing life expectancy. According to a recent analysis from Morgan Stanley, the percentage of Americans 65 and older is expected to reach 24% by 2060.
However, the downward trend is not uniform across the country. Southern states such as Texas and Florida continue to be among the fastest growing states due to factors such as job opportunities and a warm climate. In contrast, many Rust Belt states in the Northeast and Midwest are experiencing population declines as residents leave the country in search of better economic prospects. These states are also home to some of the fastest shrinking cities, including New York City, New York, and Revere City, Massachusetts.
Key investment opportunities
Certain companies, such as UnitedHealth Group (NYSE:UNH), Welltower Inc. (NYSE:WELL), and American Healthcare REIT (NYSE:AHR), are expected to benefit from trends in population aging and longevity. has been.
UnitedHealth Group Incorporated (NYSE:UNH) is a multinational health insurance and services company headquartered in Minnesota. Unlike hospitals, which are facing rising costs and declining collections, UnitedHealth Group Incorporated (NYSE: UNH) is benefiting from its focus on home health care. The home care market is growing rapidly at an annual growth rate of 2.8%. UnitedHealth Group Incorporated (NYSE:UNH) owns major healthcare providers including Optum and LHC Group.
In addition to gaining exposure to healthcare providers, another strategy to take advantage of America’s aging population is to invest in healthcare REITs that own or manage facilities that older adults visit later in life. Morgan Stanley predicts that the number of residents in independent living, assisted living, and skilled nursing facilities will increase by 400,000 to 2.1 million by 2030.
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One stock that offers exposure to the healthcare REIT sector is Welltower Inc. (NYSE:WELL), a senior housing investment trust. More than 85% of Welltower’s properties are strategically located near hospitals. Welltower Inc.’s ( NYSE:WELL ) senior housing portfolio could benefit from increased demand as hospitals grapple with financial challenges and raise prices.
On the other hand, for those interested in investing in small-cap senior housing, American Healthcare REIT, Inc. (NYSE:AHR) may be a good option. American Healthcare REIT, Inc. (NYSE:AHR) is a $1.7 billion company focused on outpatient facilities and senior housing. Regulatory barriers, such as certificate of need (CON) requirements in many states, make it difficult to build senior housing and ambulatory care facilities of the type offered by American Healthcare REIT, Inc. (NYSE:AHR) . This could benefit the company’s existing portfolio.
America’s Fastest Declining State
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our methodology
Based on data from the U.S. Census Bureau, we’ve compiled a short list of the 15 fastest-declining states in the United States. We ranked states in ascending order of population decline rates from 2020 to 2022. We also shared the absolute population decline numbers for each state.
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America’s Fastest Declining State
1. New York
Population change rate: -2.14%
Population decrease: 431,145 people
New York State had the highest population decline of all U.S. states from 2020 to 2022, a significant 2.14% decline. This decline was mainly due to negative net internal migration, with more than 430,000 inhabitants lost during this period.
Meanwhile, from July 1, 2022 to July 1, 2023, New York City’s population decreased by an additional 0.52%, or the net number of residents decreased by approximately 102,000 people. Many New Yorkers attribute high immigration rates and population decline to increased crime rates and increased costs of living.
New York City’s population loss will account for three-quarters of the state’s overall population loss from 2020 to 2023. In contrast, Oneonta is New York’s fastest growing city. The city recorded a population increase of 18.9% from 2020 to 2022.
To see more states with declining populations, see 15 States with Fastest Declining Populations in the United States.
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Disclosure: None. This article originally appeared on Insider Monkey.
