Monday, April 10, 2017

Taxation Affect Migration Patterns of Households

This is fact, not fakenews or yellow journalism. Americans are migrating from high tax states to lower taxed ones. Migration from Illinois (especially Cook County*), New York, New Jersey and so on to lower tax destination such as Florida and Texas, is influencing not only local tax policies but also real estate trends. Only the blind fools, often the majority, are buying investment properties in cities experiencing population loss due to migration.

* Cook County, Illinois has experienced the largest population loss of any other county in the United States from July 2015 to July 2016. Net migration from Chicago means politician must decide either to contract local government or raise taxes to keep the party going. The residences of Chicago have learned from experience it's always the latter. That's why many, wealth citizens first, are leaving.

Headline: Want to see how America is changing? Property taxes hold the answer

Americans paid nearly $300 billion in property taxes in 2016 - but as with everything in real estate, it’s all about location. Yet those taxes don’t just tell a story about local and regional housing markets - they also show how the country is changing.

Americans are fleeing areas with higher property taxes, making housing markets and local finances more stagnant in those areas. And even an influx of younger people into the urban areas that anchor those areas, like the Northeast and Midwest, isn’t enough to offset the exodus to low-tax areas like the Southeast and West.



Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.