I ran across a great blog post on the BiggerPockets Web site that is well worth the read: New Data Shows Americans Fleeing High-Tax States. In case you are not familiar with BiggerPockets it's a community for real estate investors and they are interested in topics like this because it has implications for where to invest.
Cross-referencing the rankings reveals a big discrepancy: the average tax burden rank among the top ten outbound states is a high 14.1, while the average tax burden rank of the top inbound states is a much lower 30.2.
In other words, many more Americans are moving from higher-tax states to lower-tax states than vice versa.
And notice where Illinois is - #2 for outbound migration and #9 for tax burden. It makes total sense, right? Speaking for myself I can tell you that before I make a final decision on where to retire I will absolutely project my total cost of living based upon home prices, income taxes, property taxes, and sales taxes.
The author goes on to discuss the pattern of property taxes across the US by county looking at the data from Attom Data Solutions (parent of RealtyTrac) and he correlates the migration data and real estate appreciation data. No surprise that states with inbound migration have seen greater real estate appreciation than states with outbound migration.
Check out the post. It's very well written.
#PropertyTaxes #IncomeTaxes #Migration
Gary Lucido is the President of Lucid Realty, the Chicago area's full service discount real estate brokerage. If you want to keep up to date on the Chicago real estate market, get an insider's view of the seamy underbelly of the real estate industry, or you just think he's the next Kurt Vonnegut you can Subscribe to Getting Real by Email using the form below. Please be sure to verify your email address when you receive the verification notice.