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Florida, Texas, and Arizona have all seen dramatic increases in cost of living (housing), from property taxes and other inflationary pressures worse than many states, however.
For sure, but all three are drastically less expensive than the west coast or northeast, save Austin.
Location: Miami (prev. NY, Atlanta, SF, OC and San Diego)
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Originally Posted by ckhthankgod
I'm wondering how much of this is due to retirees as well.
FL has always had an influx of retirees….this has more to do with others, especially well off individuals, for whom a cap placed on the amount of state and local taxes they could write off was the final straw. Covid, along with more bang for the buck real estate including more square footage v where some/many moved from, accelerated that.
More of the same, really. This trend is absolutely nothing new, although certainly COVID exacerbated it. I suspect it will revert to a more subdued trend within a couple years after the COVID kerfuffle really dies down.
It's also incredibly misleading. Some may interpret these migration flows/wealth transfers to mean that ”loser” states are losing wealth overall. However, that couldn't be further from the truth.
States like NY and CA continue to create enormous sums of wealth, year after year, way more than enough to maintain growth in overall wealth even with net losses in terms of domestic migration.
Location: Miami (prev. NY, Atlanta, SF, OC and San Diego)
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Covid AND SALT limits have contributed to it.
Of course, some cities produce wealth through home grown talent/wage jobs whereas others attract those whose wealth was earned elsewhere from other states who have decided to relocate for a myriad of reasons such as lower taxes, lower COL, weather, more bang for the buck, some combination thereof, freedom from reporting to an office and working/living where they want to, or some other reason (think along the lines of a sports analogy: home grown built team v one built with the assistance of free agency).
Of course some on CD think (reported) median income is the sole measurement of wealth, people are moving back in masses from where they came from (see NYC and CA links below) or that tech (of which I worked for a bellwether tech firm for 33 years) is the only field that creates wealth. Wealth does tend to spread out and relocate (not just to the same 2-3 states) and for many reasons—and with WFH having legs for the foreseeable future to more cities and states. Glad to see wealth spreading out to Idaho, Utah, So Carolina, etc as well.
No doubt those 2 states still produce enormous wealth, but those fleeing from there are creating wealth elsewhere in the process.
Detractors and doubters will tell you nothing has changed and deny wealth has migrated to these other cities and states; these findings from the IRS and Census Bureau contradict that false narrative. Whether it is long lasting is another story, but there has been a shift that will likely show up in at least similar 2021 and 2022 reports when they become available.
Even with this wealth migration that has driven up costs dramatically in many other cities not named NYC and CA cities, one still finds a relative bargain vs those behemoths today…I was just in Brooklyn last week and a tiny 800 sq ft condo in Williamsburg fetches $1.3 - 1.5M…. For the same price or less that still gets you a nearly 2x the square footage in a 2BR luxury building on the water with a balcony and parking space in expensive Miami—even with its recent run up, serving as a reminder to those seeking more space with more amenities that bargains, at least to them, can still be had should they choose to follow those before them and migrate with their wealth. Even more of an extreme bargain in comparison to less expensive cities in Texas, Carolinas, Tennessee and elsewhere.
Last edited by elchevere; 06-15-2022 at 02:27 PM..
More wealth is moving into Florida, by far, followed by Texas per the IRS. NY and CA were the biggest losers.
Tech jobs might not be coming over en masse but people—and their established money and wealth—sure are. If the purpose of the 2017 SALT limits was to create wealth relocation, looks like it is working with a bit of success.
(For those without a WSJ subscription, see following):
Florida, Texas, and Arizona have all seen dramatic increases in cost of living (housing), from property taxes and other inflationary pressures worse than many states, however.
Miami, Tampa, West Palm Beach areas is expensive now
Miami, Tampa, West Palm Beach areas is expensive now
Austin, Dallas, Houston is getting pricey
Miami, yes. What’s happening with the rent prices and the real estate market as a whole specifically in Miami and Fort Lauderdale is insane.
Austin, Dallas and Houston are still extremely affordable. Austin doesn’t even rank in the top 20 for most expensive apartments (as of May 2022 it was #28, Dallas #34 and Houston #51).
Location: Miami (prev. NY, Atlanta, SF, OC and San Diego)
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Quote:
Originally Posted by NOVA_guy
Miami, yes. What’s happening with the rent prices and the real estate market as a whole specifically in Miami and Fort Lauderdale is insane.
.
And yet with the rise in real estate prices, driven by wealth migration, Miami/FtL has not seen a rise in homelessness that afflicts many other expensive coastal cities. In fact, Miami actually experienced a decline during the pandemic.
Wealth migrates from CA and NY because those states create it.
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