Decelerating growth

"It suggests a slowing growth pattern in states hard hit by the housing slump, but I would caution that this is early data regarding the housing slowdown and that there are many other factors in a person's decision to move, including job availability, overall cost of living and quality of life," economist Steve Affinito told BloggingStocks Thursday. "But one thing we can take away from this report is that population growth in the former housing boom states is not accelerating. Those states can't be called booming right now."

Still, Florida, Arizona and Nevada remain among the fastest-growing states in the U.S., in percentage growth terms. Arizona's population grew 2.8% during the period, compared to 3.6% a year ago. Nevada's population grew 2.9%, compared to 3.5% a year ago, The Journal reported.

Meanwhile, Midwest state Michigan continued to lose residents, with a decline of 0.3% or 30,500 residents during the period.

Economic Analysis: As The Journal noted, the U.S. Census Bureau's annual estimate of state population through July 1, 2007 represents the first data point regarding the impact of the housing market slowdown on migration, but readers/investors should keep in mind that the report includes data only through July 1, 2007, during the initial stage of the housing slowdown. Subsequent research, by the U.S. Census Bureau and other research organizations, covering population movement through January 1, 2008 and July 1, 2008 will provide a more-complete view of the housing slowdown's effect on national migration patterns. They'll contain information on 12 months of housing correction era data, including the sluggish Q3/Q4 2007 housing quarters and any changes in Q1/Q2 2008, should they occur.