Americans Fleeing Expensive, Over-Taxed Metro Areas In Pursuit Of Affordability

Tyler Durden's picture

Americans have apparently had enough of the excessive home prices, rents and taxes in large metropolitan areas like New York City, Los Angeles and San Francisco and are packing up and moving out by the 1,000s.  Not surprisingly, these domestic migrants are flocking to areas with a lower cost of living, lower/no state income taxes, less regulations and higher job growth (aka "Red" states). 

Domestic Migration

 

Not surprisingly, the dark areas on the map above seem to match perfectly with the dark areas on this map which indicate those with the highest state income tax rates. 

Taxes by State

 

As noted in a recent Wall Street Journal article, the cities with the highest mortgage/income ratios are seeing massive outflows of people for more affordable locations.  Ironically, only 2 out of the top 10 cities with the highest housing costs lie outside of the states of New York and California. 

An April report from Trulia researcher Mark Uh found that lower-income households represent a larger share of those moving away from the most expensive markets than their overall population in those markets. For example, those earning less than $60,000 a year make up
27.4% of all households in the San Jose metro area, but they represent nearly half of all households moving away.

 

Another study this year from California policy group Next 10 and Beacon Economics found that New York state and California had the largest net losses of domestic migrants between 2007 and 2014, and that lower- and middle-income people were more likely to leave.

As one former California resident explained, the "numbers didn't make sense" in California so he decided to move to Dallas where, within a year, he was able to purchase a personal home and then went on to purchase 3 other investment properties. 

"In California the cost of housing is so high. The numbers didn’t make sense, in terms of acquiring property and renting it out,” he said. “I
couldn’t really do that in Los Angeles, but I could do that in Dallas.”

 

Within a year of moving, he was able to save enough money to purchase a new
home
while still renting out his house in Oxnard, Calif. He now owns three homes in the Dallas area.

 

Domestic Migration

 

Of course, those at the lower end of the income spectrum are far more likely to "migrate" to more affordable areas.

Domestic Migration

 

Perhaps California Governor Jerry Brown, and his Democratic minions in Sacramento, should spend some time trying to absorb this data before they lose all of their businesses, and their employees, to the state of Texas.

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E.F. Mutton's picture

In 1986 as an E-5 in the Navy, I could afford an apartment in San Diego's University Heights area.

I looked in Zillow - that area now runs ~2K/month for a small rental.  Don't think a squid can afford that anymore.

SweetDoug's picture

'
'
'
All the hyprocritical, filthy-leftist-liberal-progressives who drove up the tax rates for all their programs, now are running like the proverbial rats leaving the ship of New Yawk and Cali, for greener pastures.

Nice.

•?•
V-V

Cognitive Dissonance's picture

The map showing state income tax rates is misleading. Move to PA and see how wonderful the local property tax rates are.

Hitlery_4_Dictator's picture

Same with TX, better have acerage WITH AG exempt status or you are screwed. 

Cognitive Dissonance's picture

My son lives in York, PA (not exactly a metropolis) and pays 5% of the purchase price in property taxes EACH YEAR.

He doesn't own his home, he rents it from the state and the bank. The tax bill is as large as the mortgage payment each month.

Duc888's picture

 

 

Holy shit, 5% of the PP each year, insane.

Haus-Targaryen's picture

I saw this loudly and often to many Germans ... 

If you live in some overpriced metropolitian shithole and you have a job you can do in a smaller city ... FUCKING MOVE! 

Seriously, I live and work in FFM.  For a financial capital it is peanuts cheap compared to New York and London, however it is still stupid expensive when compared with other cities in Germany that are much more beautiful, Erfurt, Ulm, Görlitz, Stralsund, Rostock, Schwerin, Leipzig, Dresden, Halle, Jena, Nürnberg, Würzburg, etc., etc., etc., 

If you work as a tech support guy making €3500 a month after taxes in FFM, then making €2800 a month in Erfurt is a HUGE pay raise. 

I want nothing more than to save like a pig and when this whole system burns to the ground and my profession goes extinct, I move East and live my life in peace. 

I suggest you all do the same.  

 

walküre's picture

Nürnberg is a good location. Lots of companies there, nice historic old town and buildings. Ingolstadt is close and of course Munich.

Bavaria just rocks anyway.

Haus-Targaryen's picture

Münich makes FFM look cheap and is overrun with Muslims.  

Augsburg if you work in M and just commute.  

Magnum's picture

Right. There are ways to get lower prop tax where I live, and unforunately I live in a very expensive high tax area (but high prop taxes here are $12k/yr not like stupid east coast). Some people are lucky enough to live in small "manufactured homes" (some are quite nice) so they pay like $2k/yr in prop taxes but get to live in the same nice area which means low crime, good schools, work ethic demographics, etc.  You can also pay the govt high permit fees to build a conventional home or just buy a manufactured home new and the fees are really low.  

Haus-Targaryen's picture

Property taxes in Germany are very cheap.  

Less than 1% and often its so inexpensive it isn't even worth collecting as its based on historic values.  

My in-laws pay something like 500€ ANNUALLY for a vacation house on the Baltic Sea in property taxes. 

HRH of Aquitaine's picture
HRH of Aquitaine (not verified) Haus-Targaryen Nov 3, 2016 6:07 PM

They should listen to you! I agree. I am downsizing right now. I am fortunate that my property is located in an area where I can do better renting it out than by living in it. I was looking to go mobile for a few years so downsizing and renting are a win / win for me. I get to travel, someone else pays my mortgage, the property management company takes care of the tenant while I am out and about. When I figure out what I really want to do when I grow up I can figure it out. In the meantime my equity increases while someone else pays the bill.

As for saving like a pig? Same here and I am going oink, oink, oink each time I get to add another big PM bar to my stack :) I tried to lift one of my containers after filling it. I can't. It is that heavy. 31.25 pounds to be exact and filled with x5 100-ounce bars. It is just a decorative box that no one even notices.

de3de8's picture

There is no escape from the heavy hand of local,state and fed govt. If one metric low you can bet there is another that is high. Remember, govt only knows one solution and that's more of your money.

fleur de lis's picture

The real problem is that most of those fleeing high prices are from Democrat states, but then they bring their stupid Democrat voting practices with them.

In the end, all they really want are things for free and when the high prices catch up they run to another state.

Democrats are like locusts.

They swarm and devour everything to a wasteland without thought for the future, then swarm someplace else and do the same.

 

 

 

Stuck on Zero's picture

If they ever do away with Prop 13 in California the entire population of the state will leave.

Kobe Beef's picture

Diversity = Non-whites.

Non-Whites = parasites.

Parasites = mo money fo dem programs.

Mo money fo dem programs = higher taxes.

It's not complicated. 

kommissar's picture

this has to be the comment of the day! i live in the pacific nw, where all the californians are moving.  housing prices have shot through the roof in seattle and portland.  it's also displacing urban/suburban poor. pushing them right out into the streets.

HRH of Aquitaine's picture
HRH of Aquitaine (not verified) de3de8 Nov 3, 2016 11:23 PM

There is an escape. Cost mitigation. Taxes, of various kinds matter. Where can you live to maximize your skills for minimal expense?

I come from a lineage that includes family that have left their homeland and crossed oceans for opportunity. I am not locked into one place. Not now. Not ever. Thank god for the internet it is easy to keep in contact with people you care about. Using your relatives, unless they are elderly or gravely ill, as an excuse to stay in one location is an old excuse.

It isn't how much money you make that counts, it is how much money you keep that matters in the end.

kommissar's picture

i'm supposing you're meaning FFM= Frankfort?

ejmoosa's picture

Why is your son willing to pay so much to live there?

Cognitive Dissonance's picture

Because friends and job are there. Once you get used to your daily beating, leaving is hard to do.

That's his story and he's sticking to it.

Duane Norman's picture

Its a shame, but I imagine his net tax burden is still below those big bad blue states. 

Herd Redirection Committee's picture

The Agenda 21 buffs over at the UN must be tearing their hair out!

"The models showed that more people would congregate in the metro areas"

"Well, sir the model did use certain assumptions.  We were wrong on inflation, interest rates, increases in taxes. Also we haven't been able to legislate against living rurally as quickly as we initially hoped"

"GET PEOPLE BACK IN THOSE CEMENT JUNGLES and IN MORE DEBT IMMEDIATELY!"

SixIsNinE's picture

  +1

 

btw, zh is still causing computer freezing/ script error when voting ; others noted this on another thread yesterday  ... has anyone identified the problems, could zh be being harassed by pro-Skankles factions ? 

 

ultraticum's picture

No analysis of economic freedom in Murica can be considered worthy unless it incorporates real estate taxes.

When I bring up my pet gripe (real estate taxes), the boiling frogs always seem to blithely retort, "well, they're comparable with my neighbors and thank God a little lower than the next county over."  We have become sharecroppers to the whims and ARBITRARY levies of the county assessor.  And if you finance, you have three mortgages:

 - The county (1st mortgage)

 - The bank's 1st mortgage (2nd mortgage)

 - The property/casualty insurance SCAM, increasing at 10%/year minimum (3rd mortgage, required if you have a bank mortgage)

A solution would seem to be building an underground house on farm-zoned land that you buy for cash (and don't insure), since farmers are the only true protected class that can be of any color/creed.  But don't put up an outhouse that can bee seen from above - they'll tax the shite right out of it.

sun tzu's picture

Houses in TX are not expensive, so 3% of $200K is $6,000/yr. Property taxes in CA might be 1%, but the same house would cost $1M, so you pay $10,000/yr. On top of that you pay 13.3% state income tax to provide welfare to millions of illegals. 

in4mayshun's picture

13.3% is the top rate. Not everyone pays that.

divingengineer's picture

Yeah, wouldn't it be nice to be in the 13.3% bracket?

cowdiddly's picture

That's strange that map looks almost identical to the Dem Republican election map right now with all the dark grey leaving places Democrat strongholds. Wonder why this is? YOUR POLICIES SUCK

But the worst part is when they get there they start trying to screw it up and turn it into the exact type place they had to leave.

 Like a plague of locusts. Keep passing thru fuckers.

Oldwood's picture

We should have open borders between states, but should have an entrance exam and a notorized document swearing to never vote for a democrat!

crossroaddemon's picture

Because republicans have done so much better...

Oldwood's picture

So why are democrats moving to traditionally republican areas....if we have fucked up so bad? Liberalism is a virus that infects prosperity, it latches on and sucks the prosperity out of the social structure, until it looks just like their prior hosts emaciated corpse. California was republican during its heyday, but their prosperity became the target of the East coast "infected". Liberal infection is a LEADING indicator of coming despair, not a trailing or lagging one.

Tiwin's picture

Hell yeah Repubs are better!
They have given us the following agencies!

Federal Reserve
IRS
FBI
Off the Gold standard
OSHA
DEA
EPA
DHS
and the TSA who grabs your daughters pussy at the airport.

All the while saying they want a smaller and less intrusive government.
PS Ronald reagan ran the natl debt up more percentagewise than Obama has, so theres that fiscal irresponsibility angle too.

But dont bring that up around here youll get downvoted and called a Libtard.

Fucking partisans of both stripes are not Americans. They are democrats and republicans.
Over 100 years of either a D or an R in charge...how's that workin' out for ya?

anarchitect's picture

Property taxes are also high in NH.  But there's no sales or income tax.  It's the combination of the three that matters.  However, income taxes and sales taxes also go to a more centralized government, meaning that more of it gets squandered on useless and counterproductive things.

SilverSphinx's picture

"squandered on useless and counterproductive things."

And on things that are against you. The outright funding of enemy action against you.

Oldwood's picture

Exactly! I would be happier if they just took my taxes and burned them, rather than use it to create dependent people and indoctrinate them to hating the people they are robbing.

sun tzu's picture

It's more of the local property taxes in TX that are squandered on macbooks, ipads and HS football stadiums in TX. The state runs a tight budget. 

anarchitect's picture

You're quite right about high school football stadiums.  I used to live in Dallas and would see several of them when flying into DFW.  I was stunned to learn that they were located at high schools.  Utterly frivolous.

Duc888's picture

 

 

Well, at least you can pick where you live (what property tax rate you pay) some areas in NH are much much lower in PT than others, see this chart.

http://www.joeshimkus.com/NH-Tax-Rates.aspx

 

Here are two good articles relating to PT in NH.

https://nhlifefree.com/2015/11/03/new-hampshire-n-h-2015-2016-property-t...

and

http://www.nhmagazine.com/March-2011/Five-Remedies-for-the-N.H.-Property...

 

 

anarchitect's picture

Useful links.  Thanks.  Lived in NH for a few years and would gladly return sometime.

Miner's picture

It shows Tennessee's rate at 6%, but that's only for dividends.  Income from Labor is not income taxed.  We have a 9-and-change% sales tax though,

 

It's cheap to live here.

Laddie's picture

What you experienced in San Diego is coming to the rest of America. THERE IS NO PLACE LEFT TO RUN TO!

Back in the 1990s the Census bureau forecast a US population of ONE BILLION by 2100.
I have looked carefully at the immigration, legal and illegal, and their birthrates, it appears that the ONE BILLION mark will be reached sooner than that.

So unless you can live several families to a house, WHITES will TASTE HELL, until the government and its Puppet Masters, who run the Fed also by the way, decide the time is ripe to rid the planet of Whites.

Behind 2016’s Turmoil, a Crisis of White Identity (((Amanda Taub))), New York Times, November 1, 2016

Stanley Fischer: A Dual U.S./Israeli Citizen and Pro-Israel Activist as Vice-Chair of the Fed January 5, 2014

https://twitter.com/lenadunham/status/793929098926166016
Lena Dunham Celebrates Extinction of Straight White Men
https://en.wikipedia.org/wiki/Lena_Dunham
her mother is Jewish; Dunham has described herself as feeling "very culturally Jewish, although that's the biggest cliché for a Jewish woman to say"

The Truth About America’s Survival – Demographics and the 2016 Election
http://www.youtube.com/watch?v=GN_FOCF3vIQ

Oldwood's picture

Even when you move to low tax areas you end up robbed because most of those areas provide virtually nothing for what few dollars they do take.

Mikeyy's picture

As a southern Californian, I applaud this trend.  Leave. Get off the freeways.  Head to east bumfuck or anywhere else.  I don't care. 

 

Especially those of you who are poor and dumb (notice who's leaving? - under $30k annual and no education) and head for someplace where poor, dumb people don't clog up the place.

in4mayshun's picture

I've never met a bigger group of ignorant gullible dumbasses than college educated white people. I'll take a street-smart ambitious "deplorable" over a pansy frat boy any day.

Miffed Microbiologist's picture

Please stay where you are. Californians have a bad enough reputation when they invade other states. When I make my own move I have enough prejudice to overcome.

I'm sure Cali won't notice our combined gross income over 250k. Where we are going we will make far less but will be rewarded in so many other ways.

Miffed

sun tzu's picture

Each citizen leaving will be replaced by 10 illegals you stupid son of a whore

USofAzzDownWeGo's picture

I have a job offer in San Diego that starts next year. i was all excited because that is an awesome place but the cost of living is just absolutely INSANE. I like my money too much to blow 2k of it a month on stupid rent... and that's about what it is. Insane. 

in4mayshun's picture

$2k for an apartment. Houses anywhere near the coast in SD are $3,500/mo. At least in San Fran, the compensation is generally substantially higher than average, so it helps with the high rent, but pay in SD for most jobs is the same as the rest of the state so it makes living there very expensive. But it may still be worth it depending on how much you like silicon and ass.