Tags: moving | coastal cities | taxes | boston | bay area

Lower Living Costs, Better Home Affordability Driving People to Move to 'Secondary' Cities

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By    |   Sunday, 18 November 2018 04:45 PM

There is a growing trend of people moving from coastal metropolises to “secondary” cities in order to enjoy a lower cost of living, lighter tax burden, and a better chance to buy an affordable home, according to The Washington Post.

“People in the coastal markets are just fed up with double-digit price increases, and they’re moving to a commuter town or to the middle of the country,” said Daryl Fairweather, chief economist for Redfin real estate brokerage. “In our most recent ‘hottest markets’ report, Indianapolis tied for third place with Boston among the cities where homes go under contract fastest. People are moving there from Chicago, Los Angeles and the Bay Area because it’s affordable.”

Among other top-10 cities with the largest influx of new residents is Nashville, Sacramento, Atlanta, Phoenix, Austin and Dallas, according to Redfin.

One of the main reasons for the trend is capping the state and local tax deduction to $10,000 in the GOP tax reform, which hit states with high property taxes the hardest.

Fairweather explained “If you can’t itemize your taxes, you’re not getting the tax benefit that offsets your high mortgage-interest payments, which also cuts into affordability.”

The overall lower cost of living, including housing, can make it easier for those moving to the secondary cities to afford going out more, and a booming economy means there are plenty of well-paying jobs available.

However, on of the biggest challenge facing secondary cities is how they will handle growth, because home prices are rising more rapidly in many of them, making it far less affordable than in the recent past.

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There is a growing trend of people moving from coastal metropolises to "secondary" cities in order to enjoy a lower cost of living, lighter tax burden, and a better chance to buy an affordable home, according to The Washington Post.
moving, coastal cities, taxes, boston, bay area
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2018-45-18
Sunday, 18 November 2018 04:45 PM
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