Retirees leaving high-tax states for affordability

Many American retirees are moving away from states with high property taxes to live in more affordable locations. A recent study by John Burns Research & Consulting found that rising property taxes have made housing less affordable for older homeowners. From 2019 to 2024, property taxes increased significantly across the U.S. A report shows that the average property tax has risen by nearly 30 percent since before the pandemic. This has made it hard for retirees, who often live on a fixed income, to manage their housing costs. The data from Ian Kennedy, a data scientist at JBREC, highlighted states with the highest property taxes. For example, in states like New York and New Jersey, property tax rates can exceed 2 percent of a home’s value. In contrast, states like Nevada and Delaware, with lower tax rates, are seeing more retirees moving in. Kennedy noted that geography influences where retirees choose to move. Those on the East Coast tend to stay in that region, while those in the West favor warmer states. For instance, many retirees moving to Nevada come from California, and those going to Delaware often come from nearby states like New Jersey. Rising costs are pushing retirees to relocate, often for housing-related reasons. Many are seeking to be closer to family members who find it difficult to afford high housing costs in expensive states. However, this influx of retirees into cheaper areas could create more competition for housing, making it harder for others to buy homes and worsening the affordability crisis.