Bloomberg has mapped out a recent $100B in wealth migration. Where is the money going? How can you budget to survive inflation and other economic changes? What role do your property taxes play in all of this?
The Great Wealth Migration
According to a new map from Bloomberg News, $100B in wealth has shifted across America.
We all know about the mass exodus from NY and CA. Though many midwest states, and even coastal TX have been losing wealth as well.
Central Texas has attracted some. More has gone to Arizona. Interestingly, Miami and South Florida, and even Orlando have been losing wealth in favor of more northern parts of Florida.
Why The Shift
Crime and general quality of life are certainly factors in this. The NY Post puts it as high taxes bleeding NY of its people and businesses into oblivion.
It’s high income taxes, real estate taxes, annual property taxes, and more.
This is in addition to a negative business and investment environment, which has driven out 50% more businesses than the second worst state (Illinois) on a per capita basis.
What’s worse, aside from declining retirement account balances, real average weekly wages also fell by almost 10% post COVID.
When you add that to real inflation, those who still have jobs may be feeling that they are bringing in 40% less money. Though they are working just as hard as ever.
So, it’s not just about personal choice and tastes, but sheer lack of affordability as well.
Budgeting For Survival
Maybe you’ve thrived through the past few years. Maybe you still have a pretty substantial emergency cash cushion, and a job for now. However, with two more Fed rate hikes expected this year, and the inflation impact of that, how will you keep up?
What if the net effect of all this is that you are making another 40% less in 18 months from now? Will you still be able to make ends meet?
What if this trend lasts another seven years?
Moving to Miami is probably no longer an option due to rising property costs and property taxes there. If you move somewhere else you still need to factor in moving costs, and budget for inflation in property taxes there if many others are moving in too.
If you stay in place, you may need to cut a lot of spending and bills. Though you may also find that you qualify for substantial property tax savings each year due to the current market. Get in touch with us today to find out how much less you could be paying…