New Yorkers who recently ditched the city for lower-tax spots in Florida or Texas are saving far less than they would have if they had moved four years ago, as the cost of renting or buying a home has soared. I am aware that there is.
Rent and home prices in Miami have risen about 40% since the pandemic that sparked a mass exodus from the Big Apple to the Sunshine State and even Dallas and Austin in the Lone Star State, according to a study by the Financial Intelligence Service. Provider SmartAsset.
As a result, a New Yorker making $250,000 a year who moved to Miami last year ended up saving $88,036, which is 28% less than someone in the same income bracket who moved to South Florida in 2019. This is what research has revealed.
By comparison, early settlers saved $122,956, according to data first reported by Bloomberg News.
Two Texas cities that have seen explosive population growth in recent years are no longer the bargains they once were, according to SmartAsset. A New Yorker earning $250,000 who moved to Austin in 2019 could have saved $154,564. But last year, that number dropped 25% to $116,195.
A New Yorker in the same tax bracket who moved to Dallas in 2019 saved $135,887. However, last year’s savings fell 20% to $108,208.
The data also shows that the cost of living in Miami, Austin, and Dallas has increased faster than in Manhattan.
From 2019 to 2023, rents in Manhattan increased by 3.3% and home prices increased by 29.3%. Meanwhile, energy and utility costs fell by 13.7% and gas costs rose by 35.7%.
In Miami, rents rose 37% and home prices rose 43.7% over the same period, according to SmartAsset.
Over that four-year period, Miami’s energy and utility costs rose 17% and gas prices rose 54.4%.
Rent prices in Austin increased by 25.5%, and home prices increased by a whopping 55.6%. Energy and utilities prices increased by 12.5% and gas prices increased by 32.3%.
In Dallas, rents actually fell by 1.1%, but home prices rose by 21.1%. Energy and utility rates increased by 16.5% and gas prices increased by 32.8%.
According to TurboTax research, New York state’s income tax rate in 2023 was the third highest in the nation. Florida and Texas are one of nine states that do not impose a state income tax.
But soaring demand for real estate has sent home prices soaring and property tax rates in the Lone Star State skyrocketing, putting longtime residents in the lurch.
Meanwhile, Florida is in the midst of a property and casualty insurance crisis, as residents paid 42% more in premiums last year than in 2022.
Last year, Floridians paid an average of $6,000 for home insurance, nearly three times the national average of $1,700.
“The fact that people continue to absorb rising costs for food, nightlife, culture and real estate means this is the new normal,” said Luxury Real Estate Advisor, Miami-based firm Compass. Michael Martinena told the Post.
Sunbelt cities have benefited from an exodus of people from expensive New York, Chicago and Los Angeles.
More than 500,000 people have left New York since 2020, according to Census data, an exodus spurred by the coronavirus pandemic and a sharp decline in quality of life across the Big Apple due to a spike in crime. . Homelessness and the cost of living.
The New York metropolitan area lost 65,000 residents last year alone.
Census data also showed Los Angeles lost 71,000 people last year and Chicago, the nation’s third-most populous metropolitan area, lost 16,600 people.
The biggest beneficiaries of the population shift will be Texas towns, led by Dallas-Fort Worth and the Houston metropolitan area.
The Dallas-Fort Worth area’s population grew by 152,598 people last year, and Houston’s population grew by 139,789 people, according to the U.S. Census.
