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Have you noticed rising prices in your area?
However, a few states have experienced more price hikes than others.
Below are five states that are pricing out the middle class and where residents are moving to instead.
The housing market isnt the only factor driving the middle class out of California.
The average annual cost of living is 49.9% higher than in other U.S. states.
High taxes also burden small businesses and residents.
New York
New York is the next state pricing out the middle class.
Similar to California, New York lost 78,000 residents in 2023.
The cost of living in New York is, on average, 21.5% higher than other states.
Additionally, even with higher base wages, New York residents pay up to 10.9% in income tax.
Illinois
TheIllinois housing marketis hot right now, with prices increasing 7.8% year-over-year in July 2024.
Illinois has stiff taxes, with a 4.95% individual rate and a6.25% sales tax rate.
One state attracting former Illinois residents is Texas, offering an appealing combo of city and country lifestyles.
With no state income tax and a thriving economy, consider Texas if you leave Illinois.
This 7% year-over-year increase makes it hard for the middle class to purchase homes.
Utah and Virginia are popular alternatives for residents looking for a new place to call home outside of Washington.
Massachusetts
Massachusetts has seen a smaller year-over-year price increase at 4.9%.
However, the median home sale price is $668,200, a stiff price for most middle-class residents.
Some areas with larger price increases are Norwood at 28% and Fall River at 27.6%.
For residents renting, prices are 33.2% higher than the national average.
Florida is an attractive alternative for current residents who are leaving the state.
In 2022 alone, 9.47% of new residents in Florida came from Massachusetts.
Data for this article comes viaRedfinandBestPlaces.
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