In his newest video, real estate expert Jerry Pinkas delves into the substantial migration shift happening across the United States, exploring the reasons behind the mass exodus from certain states.
The video discusses the exodus of over 600,000 people from New York and California, once considered hubs of activity and desirable places to live. Pinkas aims to shed light on why Americans are increasingly choosing to relocate and the strategies for navigating potential pitfalls.
Troubled States and the Ripple Effects
Pinkas identifies five states—California, New York, Illinois, Louisiana, and West Virginia—as facing significant challenges due to substantial population loss. The video highlights the economic factors contributing to this trend, including the high cost of living, expensive housing, and elevated taxes in these states.
Elevated property taxes, such as New Jersey’s 2.47%, Illinois’ 2.30%, New Hampshire’s 2.20%, and Connecticut’s 2.11%, add to the financial burdens, making living in these states less appealing. The ripple effects of residents leaving big cities pose challenges for the affected states, with potential consequences for their overall financial stability.
Expanding on the reasons for population decline, Pinkas explains that high-paying jobs in major cities do not necessarily translate to financial well-being due to soaring living costs. Financial challenges abound in cities like Los Angeles, where the median home price has surged by 21.3% year-over-year to reach $1.2 million, and the average rent for a studio apartment is $2,237.
People in the comments are weighing in with their takes: “While taxes and cost of housing are certainly driving people out of California, many of the people leaving are climate refugees. The massive and almost statewide fires a couple years ago combined with the drought motivated many to leave the state and more will follow. Many areas out west and down south are literally running out of water.”
Additionally, factors such as property taxes, crime rates, and healthcare costs contribute to the overall dissatisfaction of residents.
The Pull Factors: Where Are People Moving To?
Examining the data, Pinkas reveals that residents are gravitating toward states in the South, seeking lower living costs, affordable housing, reduced taxes, and a more appealing overall lifestyle. Texas, with its policy of no income tax and lower cost of living, attracts individuals drawn to job opportunities in the tech and energy industries.
Florida, another no-income-tax state, has seen a population boom, although recent residents are grappling with rising homeowners’ insurance costs, property taxes, and other fees.
YouTube commenters have their own experiences with this: “After 38 years of living in Florida we moved to Darlington, SC where we found a house bigger, with a pool, a shop/garage on 1 acre land for 100k cheaper than the house we sold in Pompano Beach. I retired here and if I stayed in Florida I’m sure I would still be working to pay all the bills.”
Another person added: “I want to get away from Florida, this place is a trap… I want to go away and take my whole family away from here… But jobs and finances are holding us stuck here…”
“Fast growth year after year means future overpopulation and higher taxes. Florida is a glaring example of what I just stated!”
Further observations from the video shed light on South Carolina, specifically Myrtle Beach, being ranked as the number one fastest-growing area in the nation for the third consecutive year.
Myrtle Beach has a cost of living 8% lower than the national average and a median home cost of $360,000. It offers an affordable lifestyle with moderate weather and a large variety of recreational activities. Pinkas emphasizes the factors contributing to the appeal of these Southern states, including lower living costs, better job opportunities, and a more comfortable lifestyle.
One commenter talked about their experience: “I’m finally trying to get out of Michigan and heading to Arizona. I would love to move to South Carolina I love the beach but wages in SC are super low since I work in law enforcement. I can’t afford to take a pay cut but I’ll get a huge pay increase when I move to Arizona. I guess I’ll just drive to San Diego for the beach therapy occasionally.”
Another thing Jerry Pinkas discusses in the video is the consequences of an aging population. He draws parallels with countries like Japan, Germany, and Italy, which struggle to find a labor force for their declining populations. Pinkas suggests that the US may face similar challenges, highlighting the importance of understanding the implications of changing demographics.
Navigating the Changing Landscape
As Americans continue to reassess their living choices, the future of these troubled states raises concerns about higher taxes, financial sustainability, and the overall cost of maintaining cities.
The video underscores the impact on individuals trapped in areas with diminishing economic prospects, emphasizing the need to adapt to changing circumstances. The evolving landscape prompts a reflection on the delicate balance between economic viability and the desire for a higher quality of life.
Considering the factors discussed, what do you believe is the primary driver for people leaving certain states, and how might these shifts impact the broader economic landscape?
As migration trends continue, do you think troubled states will be able to implement effective strategies to retain residents, or will the exodus persist?