Residents are diving into the Chattanooga Choo Choo River!
A wave of individuals from high-tax blue states is moving to an impressive new development near Chattanooga, Tennessee, which boasts no state income tax. They’ve snapped up about a third of the available homes.
Developers report that a considerable number of buyers hailing from California, Illinois, New York, and New Jersey have purchased many of the 2,200 homes on the market at River Gorge Ranch.
“We anticipated considerable interest in the properties, especially given the stunning views and sunsets at River Gorge Ranch,” shared John “Thunder” Thornton, the CEO of Thunder Enterprises and the developer of the area. “What really struck me was the impressive number of inquiries from folks in high-tax states like California, New York, and Illinois.”
Sales of 715 homes to date show that only 136 buyers are from the local Tennessee region, which isn’t too surprising.
Interestingly, 183 of the buyers came from California (104), Illinois (54), and North Jersey, New York (25).
Illinois, being the closest blue state to Tennessee, contrasts sharply with far-off California.
“Right now, we’re seeing thousands of inquiries, with nearly 185 buyers from those three high-tax states having closed on residential land—exceeding local buyers from Tennessee,” Thornton noted. “We’re excited to welcome anyone who wants to experience the beauty and affordability that River Gorge Ranch offers.”
Perched in the mountains with views of the Tennessee River, River Gorge Ranch is just a short drive from downtown Chattanooga.
Notably, even CBS sportscaster Jim Nantz is among the new residents.
This trend isn’t isolated to River Gorge Ranch; many people are relocating from the coasts and Midwest to Tennessee.
According to the latest U.S. Census data for 2024, around 19,670 Californians have become Tennesseans, alongside 10,866 from Illinois, 7,530 from New York, and 1,129 from New Jersey.
An analysis predicts that both New York and California could lose close to 10% of their House seats in the upcoming 2030 Census due to stagnant or declining populations, with New York likely losing two seats and California four.
Illinois is also projected to lose two seats.
California is seeing a significant outflow for the first time since the pandemic, with over 50,000 residents leaving last year, as reported recently.
The California Department of Treasury noted a 0.14% drop in the state’s population as of January 1, marking a net loss of approximately 54,000 individuals.
New York State has also been experiencing net out-migration, with more residents departing to other states than moving there from others.
Most departing New Yorkers tend to stay within the area, relocating to Long Island, Westchester County, and nearby states such as New Jersey, Connecticut, and Pennsylvania.
However, many are opting for the Sunbelt region.
A recent analysis by the Citizens’ Budget Committee highlighted that more residents from New York City—of diverse backgrounds—are moving out than are choosing to return, indicating a shift in what people find appealing about city life.
“People leaving the area typically head to locations like Florida, California, Texas, North Carolina, and Georgia. Many are looking for regions that offer better quality of life and a more favorable cost of living,” analysts noted.
California, with the highest state income tax rate at 13.3%, is followed by Hawaii at 11% and New York at 10.9%.
Moreover, wealthy residents in New York City face the highest income taxes in the country when accounting for city fees, which total a staggering 14.7% combined.
