New Yorkers who fled to the Sunbelt in search of a cheaper cost of living are finding the savings much less lucrative than they were four years ago, new data shows.
The Covid-19 pandemic sparked an exodus from the Empire State to Florida and Texas, as Americans sought lower taxes and a better quality of life.
But amid the influx of new residents, housing costs have increased in these Sunbelt cities since 2019, according to a study by financial information provider SmartAsset.
This means that wealthy New Yorkers who moved to Miami in 2023 saved an average of $88,036, or 28% less than the $122,956 they typically saved in 2019.
Those earning more than $250,000 who moved to Dallas and Austin saved 20 percent and 25 percent less in 2023 than in 2019, according to data reported by Bloomberg.
New Yorkers earning more than $250,000 who moved to Miami in 2023 saved an average of $88,036, 28% less than the $122,956 they typically saved in 2019.
New Yorkers who have fled to the Sunbelt in search of a cheaper cost of living are finding the savings far less lucrative than they were four years ago.
This means that savings from moving to Dallas decreased by almost $28,000, from an average of $135,887 in 2019 to an average of $108,208 in 2023.
And while those who moved from New York to Austin in 2019 would have typically saved $154,564, SmartAsset found, last year they saved $116,195, or some $38,000 less.
While Manhattan remains the most expensive place in the United States, higher inflation rates in Miami, Dallas and Austin mean the cost of living in those cities is catching up with New York, Jaclyn DeJohn, Editor-in-Chief of economic analysis at SmartAsset, told Bloomberg.
“Inflation in recent years has affected Manhattan less than Miami, Dallas and Austin,” DeJohn said.
“The real, or inflation-adjusted, purchasing power saved by moving from Manhattan to one of the three cities has actually declined over the past four years, even after accounting for all differences in costs and taxes.”
Florida and Texas charge no income tax, which is a major reason many Americans have moved there from high-tax states like New York.
According to census data, 91,000 New Yorkers moved to Florida in 2022, while 31,000 fled to Texas.
The US Census Bureau found that approximately 545,598 residents left the Empire State for other parts of the United States in 2022 – with Florida, Texas, New Jersey, Connecticut, Pennsylvania and California being the most main relocation states.
But while housing prices in Manhattan have increased 29 percent over the past four years, housing prices in Miami have jumped nearly 44 percent, according to SmartAsset.
The cost of renting an apartment in Manhattan has increased by 3% since 2019.
But that pales in comparison to Miami, where an influx of residents, jobs and investment has pushed rents up 37 percent over the past four years.
Austin is also no longer the bargain it once was, according to SmartAsset.
Florida and Texas charge no income tax, which is one of the main reasons many Americans have moved there from high-tax states like New York (pictured: Dallas and Austin). install.
Property values in Austin have increased by nearly 56%, while rent is now almost 26% more expensive than it was in 2019.
The price of energy and utilities has also increased by more than 12 percent, while it is now 32 percent more expensive to fill up with gasoline.
The cost of gas and utilities also increased in Dallas, according to the study, by 33 percent and nearly 17 percent, respectively.
House prices have risen by 21 percent, but a construction boom in the city means rents have actually fallen by 1 percent since 2019 – and are below the national average.