Last year New York City, Newark, and Jersey City lost 5,700 individuals with a net worth of over $1 million. This is due to the high volatility in the financial markets and changes in tax law. The tax situation in another area such as Florida is much more appealing. Many of these people already owned a second home outside the New York City metropolitan area. Changes to deductions for housing is hurting the more expensive housing markets causing some to leave the area in general.
- The exodus of residents from New York City, Jersey City, and Newark is due to changes in the financial markets and federal and state tax laws.
- Members of the middle class are finding that their money goes farther in Texas and Florida, which have a lower cost of living.
- Real estate brokers in Florida are already working to lure in home buyers from New York, New Jersey, and Connecticut.
“Taylor said she has been advising many wealthy clients to establish residency in other states, as the tax law changes capped deductions for state and local taxes, including property taxes, at $10,000. That shift has increased the cost of living for many of the area’s residents.”