Mississippi sees capital investment surge, housing market stabilizes
Driving economic growth
Mississippi anticipates exceeding 2025 economic development records in 2026, with over $90 billion in capital investment and 35,000 jobs in the pipeline. Major projects include a $20 billion xAI data center in Southaven and expansions by Amazon and DG Foods. The state's Gross State Product is projected to expand by 1.5% in 2026.
Housing market right now
The median home sale price in Mississippi was approximately $264,200 in October 2025, showing a 1.6% year-over-year increase. Homes are taking longer to sell, with a median of 91 days on the market, while inventory has increased by 2.7%. Mortgage rates are expected to ease towards the mid-5% to mid-6% range by late 2026.
Migration patterns
Mississippi experienced a significant increase in inbound migration in 2025, ranking 21st nationwide for population growth, according to U-Haul data. Coastal cities like Bay St. Louis, Ocean Springs, and Pascagoula, along with others such as Madison and Oxford, attracted the most new residents. The state's affordability is a primary draw for movers.
Economic headwinds
While overall economic growth is projected, some sectors face contractions. The construction sector is forecast to contract in output by 0.5% in 2026, and the information sector is projected to decrease in employment by 2.2% in 2027. Additionally, consumer spending has slightly declined, and low-to-moderate income consumers are showing signs of financial stress.
Key facts
- The Mississippi Fair Housing Act, prohibiting discrimination in housing based on religion, race, color, national origin, sex, disability, or familial status, took effect July 1, 2025.
- The state income tax was reduced by 0.25% and the grocery sales tax dropped from 7% to 5% on July 1, 2025, while the gas tax increased by 3 cents per gallon.
- A new Tier 5 for the Public Employees Retirement System (PERS) will be introduced for government hires starting March 2026.
- Amazon announced plans to invest $25 billion across Mississippi, expecting to create 2,000 jobs through multiple expansions (April 2026).
- Hancock Whitney Bank and Island View Casino, both headquartered in Gulfport, were named among the best midsize employers in America for 2026 by Forbes (February 2026).