Massachusetts experienced a net loss of residents to other states in 2025, continuing a trend observed in recent years. The latest Census data, released Tuesday, indicates approximately 33,000 more people left the state than moved in during the 12 months ending July 1st. This figure represents an increase from the roughly 19,000 net loss recorded the previous year.
Addressing the Outflow
Governor Maura Healey appointed Eric Paley, a partner at the venture capital firm Founder Collective, as her economic development secretary in September. A key task for Paley is to address the ongoing outflow of residents, a challenge his predecessor, Yvonne Hao, also focused on.
Paley argues that focusing solely on the number of people leaving the state doesn’t tell the whole story, as immigration from other countries continues to contribute to population growth. He also points out that the Healey administration views this immigration as vital, but acknowledges it could be impacted by federal policy changes.
Focus on Younger Residents
Paley expressed particular concern about retaining younger workers, aged 22 to 35, who are often driven away by high costs, especially housing. He believes that as people age, they place a higher value on the benefits Massachusetts offers, such as strong schools, quality healthcare, and a high life expectancy. He suggests a more effective communication strategy is needed to highlight these advantages to younger residents.
A similar approach is recommended for businesses, encouraging them to showcase the benefits of operating in Massachusetts. However, employer sentiment has been negative for the past 10 months, according to polling by AIM, the statewide employer group. Despite this, the state’s gross state product is expanding at a rate of 3 percent annually – the fastest in the nation.
New Initiatives and Funding
Paley intends to leverage quasi-public agencies to develop plans aimed at encouraging younger workers to remain in Massachusetts. He also has access to a $4 billion economic bond bill, signed into law in late 2024, to support emerging sectors like AI, quantum computing, and clean-tech. The goal is to create opportunities for the next generation of innovators within the state.
Boston University finance professor Mark Williams views the outmigration trend as a significant concern. A 2024 report he authored attributed the outflow to high taxes, healthcare costs, and housing expenses, predicting a potential net domestic outmigration of 96,000 by 2030. The latest Census data, he says, moves the state closer to that scenario.
Frequently Asked Questions
What is the current trend in population movement in Massachusetts?
Massachusetts is currently experiencing a net loss of residents to other states. In the 12 months ending July 1, 2025, approximately 33,000 more people moved out of the state than moved in.
What is the Healey administration doing to address this issue?
Governor Healey appointed Eric Paley as her economic development secretary to focus on curbing the outflow of residents. The administration is also pursuing initiatives to attract investment in emerging sectors and improve the state’s overall economic climate.
What factors are contributing to people leaving Massachusetts?
According to a report by Boston University’s Mark Williams, high taxes, healthcare costs, and housing expenses are major factors driving residents to leave the state. Concerns about the cost of living are particularly impacting younger workers.
What steps do you think Massachusetts can take to retain its residents and attract new ones?
