HomeBusinessPacking up the wealth

Packing up the wealth

Pity the poor governors of some of the large metropolitan areas in the Northeast, West and Mid-west. Specifically, New York and Illinois, where their mostly wealthy and upper-middle-class residents are packing their bags and their money and heading to other states where they think they will be more appreciated.

The IRS’s adjusted gross income statistics show a startling pattern of migration within the United States; two of the most astounding states are Illinois and New York. The IRS data shows a net 105,000 people left Illinois in 2021, costing the state approximately $10.9 billion in adjusted gross income. That’s up from $8.5 billion in 2020 and $6 billion in 2019. New York’s income loss increased to $24.5 billion in 2021 from $19.5 billion in 2020, and $9 billion in 2019. In addition, California lost $29.1 billion in 2021, more than triple what it did in 2019.

By comparison, the lowest tax states kept adding income even during the COVID-19 pandemic. Florida, a state with zero income tax, gained $39.2 billion, up from $23.7 billion in 2020, and $17.1 billion in 2019. The states that contributed the most to Florida’s billion-dollar bonuses were New York, Illinois, New Jersey and California. Florida certainly isn’t alone – many other low-tax states like Texas, Arizona and Nevada have also benefited from this wealth migration. In addition, Florida and other low-tax states led the country in job growth. Florida’s employment grew 4.5% over the past year and Illinois’ gain was 2.2%.

As great as Florida’s wealth gain is, we have dropped out of the Emerging Housing Markets Index compiled by Realtor.com. Although Florida regions have typically been in the top 10, in some of our smaller and growing areas they are not within the top 10 on this most recent index. This is the good and the bad of being a very popular state. Everything becomes more expensive and housing costs, as we all know, are not nearly as affordable in Florida as they once were.

The first quarter index indicates that buyers demand affordable homes and most of these are in the small Midwest cities. The top-ranking area is Lafayette, Indiana and the 10th ranking is the Manchester-Nashua, New Hampshire region. The index ranks the 300 biggest metro areas in the United States. In addition to housing market indicators, the index incorporates economic and lifestyle data. Real estate taxes, unemployment, wages, commute time and small business loans are all factored in.

Finally, I would be remiss not to point out that as of May 1, Fannie Mae and Freddie Mac, the quasi-government agency that controls and insures most of the residential mortgage financing in the country, has changed some of the agency’s mortgage pricing.

The new rules add fees for many borrowers with high credit ratings and large down payments and use them to reduce the cost of borrowing for those with lesser credit ratings and smaller down payments. There is a formula that factors in the borrower’s credit rating and the down payment, but the spirit of the change is to support lower-income homebuyers who, in the opinion of the Federal Housing Finance Agency that regulates Fannie Mae and Freddie Mac, have the “financial capacity to sustain a mortgage.” Congress is naturally taking a look at this new fee schedule and comparing it to the subprime debacle prior to the 2006-07 financial meltdown.

Next time one of the high-tax states evacuees move in next door, greet them and their bags of money. Florida has indisputably changed from when my parents moved here in the 70s and I’m pretty sure they would think it’s a good thing. My father always said Florida has the best roads in the country. He should see the traffic now.

Most Popular

More from Author

Buyers losing hope

Tired of waiting for mortgage rates to come down? You’re not...

Boomers continue to boom

Just when you think they’re too old to influence the smart,...

Florida insurance ground zero

We are on the brink of hurricane season and this year...

Cost of American dream rising

Owning a home of your own has been the American dream...

Fritz Dahlquist lived a wonderful life

HOLMES BEACH – Longtime Holmes Beach resident and Nautilus condominium complex manager Fritz Dahlquist passed away after a brief and sudden illness on May 8. He was 70. He’s survived by his wife of nearly 45 years, Dena, and their two adult daughters, Abby Dahlquist and Lenna Dahlquist....

Signed palm tree agreement remains elusive

BRADENTON BEACH – A newly-planted coconut palm tree that fell over on Bridge Street last week has raised questions about whether the city obtained a signed indemnification agreement prior to planting it and 79 other trees. At the April 3 Community Redevelopment Agency (CRA) meeting, members unanimously approved...

First win for Shady Lady

ANNA MARIA – After two halves of youth soccer action, team AMI Coconuts could not put a point on the scoreboard against The Intuitive Foundation squad in the 8- to 10-year-old recreational soccer league at The Center of Anna Maria Island. The Coconuts team put up a strong...

Buyers losing hope

Tired of waiting for mortgage rates to come down? You’re not alone. Every potential buyer out there is waiting for the same thing, the problem is the Federal Reserve isn’t moving the needle, so it might be a long wait. The Federal Reserve made no move in their...

Try a beach fishing adventure

Are you an accidental angler? Someone who might not be passionate about fishing but who has always wondered what all the hype is about? Maybe you’re an avid freshwater angler from the north unfamiliar with the salt. Whatever your situation, if you want to get a taste...

Latest Pine Avenue bid rejected

ANNA MARIA – Following Mayor Dan Murphy’s recom­mendation, the city commission rejected the latest Reimagining Pine Avenue bid received from C-Squared. On May 9, the commission voted 5-0 in favor of rejecting C-Squared’s approximately $1.4 million bid to construct a one-block Reimagining Pine Avenue prototype area that was...

Candidate qualifying commences soon

ANNA MARIA ISLAND – The candi­date qualifying periods will soon begin for those seeking election or reelection during the 2024 election cycle. Anna Maria provides a two-week qualifying period. Bradenton Beach, Holmes Beach and Manatee County provide one-week qualifying periods. All city commission and may­oral terms on the...

Farrington secures petition signatures

MANATEE COUNTY – Mana­tee County Supervisor of Elec­tions candidate Scott Farrington has secured enough petition signatures to avoid paying a $10,133 qualifying fee. The one-week qualifying period for county candidates begins on Monday, June 10 at noon and ends on Friday, June 14 at noon. Farrington will face...

Captain: Derelict boats looming issue

CORTEZ - Tour boat Capt. Kathe Fannon is questioning why authorities are focusing on the removal of Raymond “Junior” Guthrie’s net camp from the waters off Cortez while ignoring more than 20 derelict boats in the same waters. “The net camp is who we are, it’s our heritage,”...

Season’s first shorebird nest discovered

BRADENTON BEACH – The first shorebird nests this year on Anna Maria Island have been spotted and marked by Anna Maria Island Turtle Watch and Shorebird Monitoring volunteers. A colony of least terns began nesting the week of May 6 at an undisclosed location in Bradenton Beach. A...

Mayors discuss law enforcement consolidation

ANNA MARIA – Anna Maria Mayor Dan Murphy and Holmes Beach Mayor Judy Titsworth are not on the same page when it comes to the potential consolidation of law enforcement services, with each mayor preferring their city’s law enforcement agency take over policing in both cities. As is...

March tourism numbers soar

ANNA MARIA ISLAND – March tourism numbers are up from last year in all three Island cities, significantly so in the City of Anna Maria. Each month, the Manatee County Tax Collector’s Office reports how much income the county’s 5% tourist tax produces. The tax is collected from...