Hi there, I have a bit of a broad question for those of you who have knowledge in areas such as budgeting, taxes, housing costs, etc.
I live in California and, as most everyone knows, it is considered to be a very expensive place to live. For years there has been this narrative related to people fleeing the state for less expensive areas, many of which are now becoming more expensive as well. Recently, due to inflation and various other factors—such as the state’s housing crisis—we’ve been seeing rent prices grow higher and higher here in California. It can feel quite unlivable sometimes. Even as someone who earns in the low six figures, I can definitely feel the squeeze. I’d love to rent a nicer home with more space eventually, but the amount I’d pay in rent for a nicer apartment is typically outside of even my budget here in Southern California. Indeed, people at my income level are regularly living with roommates these days. Buying a house? Forget about it.
The thing is though, most of the country appears to in some form of a housing crisis. I look at apartments throughout the country and I often don’t see that big of a price difference, at least when taking into account some of what you lose when leaving California. A popular argument against leaving a state like California in favor of a less expensive state is that there are typically fewer career opportunities and less high-paying jobs. I find this to be true when I look at jobs online that are similar to mine in various other parts of the US. Sure, I could pay maybe $1,800/month for a decent 1 bedroom apartment in Raleigh, North Carolina that would cost me $2,600/month in Costa Mesa, California, but I’m also probably then making $65k a year rather than $105k a year. Additionally, it seems like many places that were previously considered more affordable are now strained from the influx of people fleeing high-cost areas, which is stressing out locals and jacking up prices on many things. Sometimes it seems like it would be pointless to leave California, despite how expensive it is.
What I don’t always factor in enough when I’m considering this topic are things groceries, utilities, taxes, etc. (California obviously has very high income taxes compared to most other states but one could argue that California also has more to offer its residents as a result of those taxes.) Obviously there’s no definitive answer here, because I’m comparing one state (California) to various other states throughout the US, plus there’s a degree of personal preference that goes in to where one chooses to live. Generally speaking though, can leaving an expensive state like California actually save a person money over time if they move to a more affordable state? Even if they are earning less per year in that state? Even though cost of living will probably increase in that area too over time?
I’d be interested to hear you expound upon this general question if you can and are interested. I know I’m being pretty general and am probably leaving out some important considerations, but I’m interested in reading the feedback this might generate from those of you who are experienced with matters related to personal finance.
Submitted September 16, 2023 at 05:05AM by purplewheatxylophone https://ift.tt/NawHb7u
