The great state escape

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Published Date 1/14/2025

Moving trucks are telling quite a story in 2024, with residents packing up and waving goodbye to certain states in record numbers. According to Realtor’s Julie Taylor, Atlas Van Lines reports the states seeing the biggest exodus: Louisiana, California, Illinois, South Dakota, and New York. But what's driving all these people to seek greener pastures?

In Louisiana, which tops the top five list, job scarcity is pushing residents to look elsewhere. The state's unemployment rate hit 4.3% in November, creeping above the national average. Adding to residents' concerns, Louisiana recently ranked as one of the worst states for life expectancy in the country, coming in at fourth from the bottom.

California and New York's stories share a common thread: the ever-rising cost of living. California ranks as the second most expensive state to call home, while New York isn't far behind in fifth place. Take Los Angeles, for example, where local real estate expert Jameson Tyler Drew points out that property taxes alone can hit new homeowners with bills in the five figures. He notes that even childcare costs in LA can rival monthly mortgage payments, forcing many families to reconsider their California dreams.

Taylor says Illinois residents are voting with their feet, primarily due to the state's notorious tax burden. The Prairie State has earned the dubious distinction of being the least tax-friendly state in the nation, with state and local taxes taking a hefty 13% bite out of family incomes. Former Chicago resident Jeff Lichtenstein, who relocated to Florida, puts it bluntly: "Illinois is a mess," explaining how the state's overspending has created a vicious cycle of high taxes driving away residents.

Meanwhile, South Dakota's challenging climate is sending residents searching for milder weather. With winters ranked as the fourth harshest in the country and some of the strongest winds nationwide, many residents are deciding they've had enough of battling the elements.

There is a silver lining to all this movement, as Taylor reminds us. As residents leave these states, housing markets are opening up, potentially creating opportunities for those willing to weather the challenges that sent others packing.

Realtor, TBWS

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