Massachusetts Residents Relocate in Search of Affordability

News Summary

A significant migration trend is emerging as Massachusetts residents seek more affordable living options, primarily moving to Florida and New Hampshire. A recent survey highlights that 65% of those relocating are heading to New Hampshire, driven by high costs of living including soaring housing prices and taxes. Despite Massachusetts showing slight population growth, the state’s burdensome financial landscape is prompting residents of varying income levels to consider new homes, raising concerns about the impact on the local economy and the need for policy reassessment to retain talent.

Massachusetts Residents Head South and Beyond for Affordability

In a striking trend, many residents are leaving Massachusetts to find more affordable living in sunny Florida and neighboring New Hampshire. A recent survey conducted by the Massachusetts Opportunity Alliance reveals that a significant portion of the state’s population is packing up and moving out, mainly due to the high cost of living in Massachusetts.

Where Are They Going?

The data gathered indicates that approximately 35% of individuals who relocated are choosing vibrant Florida, while a whopping 65% have their sights set on New Hampshire. This shift is a response to the soaring housing prices, taxes, and grocery costs that have become an overwhelming burden for many.

The Numbers Tell the Story

Those who participated in the survey were primarily former Massachusetts residents who are now enjoying life in their new locations. About two-thirds of them cited high living costs as their primary reason for relocating. This concern seems to transcend all income levels, proving that exorbitant prices can affect anyone.

Interestingly, many high earners are also part of this outflow, particularly following a 2022 state ballot initiative that imposed a 4% surcharge on taxable income exceeding $1 million. Even though the wealthiest residents, earning over a million, only account for approximately 3% of those leaving, they represent a disproportionately large financial contribution to the state’s coffers, as they make up less than 1% of Massachusetts’ tax filers.

What About Income Levels?

Among those moving away, around 44% reported annual earnings ranging from $100,000 to $250,000. This highlights that not only the ultra-wealthy are feeling the strain, but those with more moderate incomes are also grappling with the high costs associated with their home state.

Tax Burdens: A Comparison

Massachusetts doesn’t rank favorably when it comes to tax burdens. Florida is celebrated as the fourth-best state in the U.S. for its low tax environment, notably without a state income tax or estate tax. New Hampshire is also praised for its favorable tax conditions, coming in at sixth place. In contrast, Massachusetts lags behind at 41st, making it clear why residents are considering new homes elsewhere.

Home Prices: The Bigger Picture

While Florida may boast a lower tax rate, it isn’t without its challenges. The median home price there stood at $410,800 in January, showing a slight increase over the previous year. Comparatively, Massachusetts’s median home sale price has risen even steeper, hitting $622,200, which increases the pressure on residents trying to make ends meet.

The average home value in Massachusetts lands at $627,596, dwarfing prices not just in Florida but also in Texas, where homes average around $301,011. This stark difference in housing affordability continues to fuel the outmigration trend.

Massachusetts Population Dynamics

0.25% in 2023, translating to an increase of 18,700 people. Many of the out-migrants are reportedly being replaced by individuals moving into Massachusetts from other states, including Florida and New Hampshire.

This influx demonstrates the state’s continued attractiveness for specific groups, with many drawn to job opportunities, safety in schools, and family-friendly environments. A significant trend shows that despite challenges, the local economy is improving, particularly for small businesses.

What’s Next?

high survival rates for small businesses and generally higher median household income growth compared to many southern states, there’s hope that the Bay State can reclaim some of its departing residents, making it a favorable place for both new and existing families.

As the trend continues, it becomes increasingly clear that for many, affordability trumps location, and Massachusetts must adapt to keep its residents happy and thriving.

Deeper Dive: News & Info About This Topic

• Boston.com: Here’s Why You Should Move to Massachusetts
• WWLP: Where People in Massachusetts Are Moving To Most
• 247 Wall St: Where People from Massachusetts Are Moving To The Most
• Stacker: Where People from Massachusetts Are Moving Most
• Wikipedia: Cost of Living